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  • Mortgages & Finance

    New Purchase

    Hi all,

    I would appreciate your input in the below scenario:

    We are in the process of trying to buy a new resi for £995K with stamp at £42K. Total required £1.037M

    The sale of our current resi has been slow (given the market) but worse case numbers as below:

    £600K sale

    Redemption £370K

    Free cash post sale £230K

    Mortgage agreed on new resi for £550K

    Savings of £360K held.

    Therefore total £910K funding agreed now before taking my resi into the mix.

    Question:

    I appreciate my obvious scenario is to sell our current resi and buy the new one.

    However In the event the sale of our resi is slightly delayed we don’t want to miss this new house,

    Therefore what are our options (if any) to buy the new house without selling our current resi? Given the current potential shortfall is circa £127K

    Other info:

    A full bridge loan on the new house would be eye watering so not worth considering.

    Rental on our current house would be £1800 pcm therefore we would not be able to convert to let to buy and pull more money out in the short term.

    Once our current resi is sold we are OK, but I don’t think the vendor on the new place will hang around now.

    We would appreciate your thoughts on ways in which we could fund the purchase of the new house without selling our current house in the short term

    Thank you in advance

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    Peer to peer loan, secured on current place if necessary?

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    P2P wouldn't be able to lend on this surely as it's a resi so therefore FCA Regulated?

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    It has been known.

    Folk2folk used to do it for one - I know of someone who had self-build funding from them. I think that particular agency has given up, however.

    Is there a statutory bar -I  was expecting it would be their normal system for most P2P.

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    Thank you for your response,

    how does this work?  What is the assessment criteria? 

    other suggestions also welcome


     

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    Please also factor in you will have to pay 3% extra stamp duty as you will own 2 properties. You can claim that back once you sell the 1st property but only if you sell it within 3 years. Thats nearly £30,000 extra.

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    Is £550k the max you can borrow on your new resi mortgage?  If possible, raise the extra £127k, and then when the sale goes through repay the extra down to a comfortable level again.  Different lenders have different affordability criteria and you may find that you could simply raise the new resi mortgage as a temporary measure.

    Happy to offer a second opinion / quote from our wide reaching panel of lenders (greater than any other Broker due to our in house and privately owned 2x FCA regulated brokerage Companies who have access - between them - to high street lenders, private client banks, specialist funders, challenger banks etc).


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    Another option not mentioned is to see if you can organise a loan privately.

    This is sometimes done through solicitors or accountants who may have clients who have spare cash.

    Matt W

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    God when I see figs like this I just shake my head

    its unreal compared with the NE

    You can live the life of the Landed Gentry in the NE for the same money

    https://www.rightmove.co.uk/property-for...59402.html

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.