Hoping to move house, getting deposit from uncle??

[Cornie]

My husband and I are preparing our house for the market. We are in a pretty good location and hope to move our house fairly quickly (who isn't???) What I mean is we are going to ask a realistic price for it, there is another house for sale in the estate for a ridiculous price and they actually got offers but the buyers couldn't secure a mortgage!
We want to move to a rural area for the kids and will be quite happy to sell our own house for enough to pay off our mortgage and give us a deposit.
We've seen a house that we love in a lovely rural setting. It has been on the market for over a year. In the last 2 months the price has been reduced 3 times. We would like to make an offer but need to sell our own house first as we have no savings for a deposit. My uncle has told me that he will lend me the money (and say it's a gift) on an interest free basis until we sell our own house so that we can move on this.
What implications would this have? Would any bank entertain giving us a second mortgage in this situation. We are both working and have clean credit histories and I reckon we could manage the 2 mortgages for a while. I would not really be interested in going down the route of renting out our house as it is in very good condition for selling.

Any advice?

 

[dereko1969]

what makes you think this house, which has reduced it's price so often in such a short period of time will sell to someone else quicker than your own house?

you're unlikely to get a second mortgage.

there are plenty of houses out there for sale, take your time.

 

[Cornie]

Thanks for replying Derekm and maybe you are right.

I just think that the seller is getting really eager to sell and that is why the price has dropped so much. A couple of weeks ago on the last price drop we both felt that the house was fantastic value for what you were getting, and now today I see it has dropped another 10K. I can't help but feel that it has got to be snapped up soon. On the other hand our location would be very attractive to a lot of people, whereas this house is a bungalow in the country and there may not be as much demand for this.

I know we shouldn't be setting our hearts on one house when there are so many for sale, but for value for money we can't help but feel we will not beat this. There are 2 or 3 others in the general area for sale, one of which I really love, but they are 50 or 60K more.

I have an appointment with the bank next week to see what they have to say.

 

[Troy McClure]

Why dont you make an offer on the house with the condition your own house has to be sold before closing. Just so long as they take it off the market. I am sure you could give them a suitable deposit to buy the time. Make sure your solicitor looks at it though.

 

[mf1]

"there is another house for sale in the estate for a ridiculous price and they actually got offers but the buyers couldn't secure a mortgage!" Banks are not lending.

"We would like to make an offer but need to sell our own house first as we have no savings for a deposit." You have no savings.

"I reckon we could manage the 2 mortgages for a while. " And after that?

All the reasons why you should not even attempt to purchase any house until you have the money ( in your bank account) from the sale of your own house. Chain sales have completely dried up because of all the uncertainty of people being able to complete.

mf

 

[Greta]

Don't take the risk of having two houses and two mortgages on your hands, unless you can manage it not only for a while, but for a VERY long while, and not only at the current interest rates but even if the interest rates double and your income drops. You can't be sure you'll be able to sell your house quickly, until it's sold and you get money in your bank account

We got stuck with two houses as we were unable to sell the first one when we moved. Luckily, we could keep going for a year, and then rented the first one out, as it was still not selling. We would dearly love to sell it but are afraid of losing good tenants if we put the house on the market, and still not selling. So looks like we'll be stuck with that house indefinitely

We did NEED to move for work reasons, so I don't regret buying our current house as we need somewhere to live, but your situation is different. So my strong advice is to wait until you sell.