How long for a Top Up?

[Deb___]

Hi,

We will be putting our house on the market in the coming few months. Our reason for selling is because our eldest has started a secondary school that we're very happy with but it's 8 miles away and we want our younger two to go there too eventually. Also it's in a town we really like as we're not happy here and we've always liked the other place and are certain it's where we want to live.

So, I reckon it will take up to a year to sell (at this slow time). Then we will rent for a year or so (to make *sure* we are happy living there as we made that mistake already and 10 years later, I still wonder why we live where we do now!). Then we will buy.

But in the meantime, I really would like to consolidate some of our short-term loans - we're managing them okay but there's a few of them and it would be great to lump them in together. Our eventual plan anyway is to clear them from the sale of the house (with the exception of the Credit Union one). So I'm thinking of actually applying now for a top up on our mortgage, consolidating those loans, then put the house on the market. In other words we'd be topping up now, selling and clearing that mortgage in a year or so and then getting a new mortgage in two years - a 20 year mortgage but hope to clear it in 13/14 years.

Does this make sense? Or does it seem daft to top up now and then sell the house? If we decide to go ahead and apply for a top up (probably through a broker) how long is it likely to take? I'm thinking if it takes a long time, we may as well not bother and just wait for the sale of the house to clear our debts.

 

[groom]

Hi,

So, I reckon it will take up to a year to sell (at this slow time). Then we will rent for a year or so (to make *sure* we are happy living there as we made that mistake already and 10 years later, I still wonder why we live where we do now!). Then we will buy.

Why would it take a year to sell? If it is priced competitively it could sell straight away. If it isn't priced competitively it will probably never sell.

 

[Deb___]

I'm basing it on the average time it has taken to sell houses around here. While there's nothing at all wrong with the houses, it seems the average is anywhere between 6 months to 18 months - although the fact that ours is detached is apparently (according to a couple of estate agents I spoke to) a plus. It's a good house but as there are so many new developments around here, I think buyers generally go for the nearby new ones before looking at second hand ones. We will certainly be pricing it competitively and according to market conditions, as when we buy our new one, fingers crossed, that too will reflect current market conditions.

 

[Guest117]

I've had top up mortgages sorted within 3-4 weeks with EBS. With them it has depended on the amounts involved. Generally 100K or less they have not required additional life assurance therefore no medicals etc and quick approval and check. If large amount it will prob take longer.

Your mortgage provider should be able to tell you on the phone approx how long it will take. Make sure there is no penalty for paying off quickly.

The decision is yours regarding whether it's a good idea or not. Calculate what your current loans are costing over say 6, 12 and 18 months and compare to mortgage top up.

Good Luck

 

[Deb___]

I've had top up mortgages sorted within 3-4 weeks with EBS. With them it has depended on the amounts involved. Generally 100K or less they have not required additional life assurance therefore no medicals etc and quick approval and check. If large amount it will prob take longer.

Thanks. That sounds good. We're topping up by 40k so it will hopefully be straightforward.

Good Luck

Thanks!