Butterflygirl83
Registered User
- Messages
- 10
I never thought of this. I'm in the same situation, buying a 2nd family home and selling. I am meeting a mortgage advisor tomorrow and will ask him! I presumed that the bank would consider the sale of the house as some sort of collateral and would wait for the sale to complete, hopefully it's not a case where a bridging loan would be required.
There certainly are banks out there that will give you approval in principle before you sell your house. The redemption of your current mortgage and the deposit that the sale would raise would be standard conditions on the approval in principal. In order to move to loan offer, you will need to have unconditional contracts signed for the sale of your house. The problem is, your sale could be delayed or could fall through, in which case you would be badly stuck. Bridging is available only on a very limited basis, and only when the bank is satisfied that you can support your current and new mortgages on an ongoing basis (again, in case your sale falls through). In practice, it is not an option in your case, as you need the proceeds of your sale for the deposit.Trying to sort out a mortgage application at the moment for a new house. I will be a second time buyer. House has been valued and I hope to have 70k+ profit left over once we pay off my current mortgage. The property I want to buy is 205k and I am looking for a mortgage of 135k. But the banks I have approached wants me to sell this house first before applying for the new mortgage as I don't have the cash deposit required. Is there any way around this? I don't really want to sell up with no security of actually getting the new mortgage! It all seems a bit nuts.
Thanks.
. So silly considering we will be 70k in profit and the mortgage we need is less than the one we have now!
It's pretty ridiculous though. Things like 90% LTVs and bridging finance were plain vanilla before the Celtic Tiger era and we had no problems.
Like a lot of things in Ireland, we went too far one way in the run up to the financial crisis. Now things have gone too far the other way.
You would agree that property prices have gone very much up, very quickly in the last couple of years. Reminds me of the celtic tiger actually. Not as bad.
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