April 18th, 2010
Is it possible to get a second mortgage with the intention of selling my first property?
I live in a semi-detached house and i’m wanting to move. I have seen a house which I will be viewing to confirm whether I wish to buy. The estate agent is selling it on behalf of a company and therefore will only be online for 28days (They want a quick sale). When I told the estate agent my property wasn’t on the market yet, she told me I could get a second mortgage to fund the property I wish to buy, and put my current house on the market to sell – basically to secure the house that I wish to buy. Is this possible, and would banks accept this? My wage isn’t exactly massive??? Please advise.
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Filed under: Buy Property
It’s called a bridging loan and is entirely possible. The bank would need the valuation on your current property and also on the one you wish to purchase. It’s not too complicated so give your mortgage broker (or your mortgage company if you don’t have an advisor) a call.
Yes you can do that, as long as the lender is happy that your income is enough to pay both. A bridging loan costs money. Please remember that your old property could be on the market for some time, or that you may have to drastically reduce the price in order to get a quick sale. Banks aren’t as keen as they used to be bout giving bridging loans, but you won’t know unless you ask. Find out before you start paying for surveys etc on the new property.
Its possible if you have a buyer, but with no buyer, no. Wanting is sell isn’t enough, you need a sale in progress. The closing dates have to be close together, with a bridge loan covering you for a few days, not until a buyer happens along.
Don’t do it. You will probably not get a large enough second mortgage to fund this.
In theory a small number of lenders will consider this, BUT from your point of view is fraught with difficulties – affordability, whether bridging or new mortgage. Closed bridging finance is only possible if you have a completion date for the sale of your own property. Don’t believe the estate agents sales cr*p about only being online for 28 days. It is a buyers market – suggest the agent sells your property and they might be more reasonable. As to ‘open bridging’ finance – this doesn’t exist anymore.. Assume you need cash from the sale of your house to provide new house deposit. Is your estate agent also a qualified mortgage adviser ??