our house sale has fallen through...

L

lobster

Guest
chain break......

our house we are selling (172k) has fallen through... leaving us short to buy our new home (200k)...

our finances would have been 12k owed on old home so further 40k reqd. if sale went through as normal...

but... we own another property (no mortgage owed) valued at 130k which we rent out for £500 pm.

I can only think of two options...

can we use our combined equity/capital of 290k to raise the 200k to purchase our new property ie. buy to let mortgage on our 130k house, say 80k + conventional mortgage on new property (200k) of 120k.

or

will bridging be a better option... (been warned against) until our 170k property is re-sold??

or

any other options.. any advise greatly appreciated...

thanks in advance
 
Re: our house we are ..(172k) has fallen through.....what are our options...

Bridging only really comes into play when you have contracts signed on the property you are selling - so not an option here.

a balance across the new property and the rental property appears to be the best option.

Possibly go interest only on one or both mortgages until the 170k property is sold
 
lobster, are you in the UK? The house prices you mention are low if they are euro values and you mention a figure in £. Please note that this is a forum for Irish financial issues, so any specifics about bridging, etc, will relate to Irish conventions, practices and experiences.
 
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