Call us on 0344 346 3672
or arrange a callback

If we need to buy a new home, before we've sold our current one, how can we do this?

Posted on 23 March 2015 by Stuart


We own our current property outright (value approx £260k) and have no debts. We also have around £35k in savings. We want to buy another property before we sell the one we have (just a slight delay, our current property would be on the market within a couple of weeks). We would hope to obtain the property we are thinking of moving to for around £220k (i.e. less than the property we own). Is this possible and, if so, how?

Stuart,

As the amount of time you are likely to need to money is very short, this situation sounds like a case for a bridging loan. Typically bridging is a more expensive form of lending, however there are some lenders that do have some fairly competitive rates.

If you were looking to keep your existing house, then we could have looked at a Let To Buy scenario, but as you are looking to sell your current home, with only a small time delay between completions of purchase and sale, a bridging loan would seem the most likely option for you.

If you'd like to discuss your options in more detail, then please contact one of our consultants on 0844 346 3708 and they'll be able to give you a clearer idea of how we can help.

Regards,

Simon

More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders

 

 

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.