re-mortgaging existing homes

[doubledecker]

Hi,

We are currently looking to buy a new family home to get much needed space
Unfortunately such homes in our area cost approx 1.2 M. We need to purchase the new house quite quickly

Fortunately however we have two existing properties with minimal mortgages whose combined value is slightly above the new home's asking price .
Recognising the delays involved today in selling a home(s), we are considering getting a mortgage for most of the new price against the existing homes and possibly renting them out.

Does this makes sense and does that limit our ability to pay off part of the new mortgage if we manage to sell 1 of the existing homes. We do not want to accept a below value price for a house or would rather wait for a sale.

Should we consider interest only mortgage whilst we await the sale

Is this a better option than getting a bridging loan , say for 6 months

All advice welcome


DDecker

 

[ClubMan]

How much are you looking for borrow for a c. €1.2M home? Can you afford the repayments? Very roughly the repayments on a €1M mortgage over 40 years at 5% would be c. €5K per month.

 

[doubledecker]

How do you know the "value" of your current properties?

In last month or so, neighbouring houses have sold so it gives an indication of potential value and interest.