Trading up. Buy first with a mortgage. Then sell existing house and clear mortgage.

D

DeeKie

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We plan to buy a house 1.2m abd then sell our own one about 800k. We own our current house outright and so will use the proceeds from that to pay off the mortgage on the new house. We will need a mortgage to buy the first. It needs some insulation and a few other items too. Any suggestions on how to approach this with the mortgage providers? What should we look for in terms of mortgage.
 
A family member told us not to tell the mortgage people about the plan as they won’t be interested in a mortgage of a few months.
 
Will you qualify for a mortgage of 1m to buy the second based on your income and how much time you have to pay ? Will you do the work in your new home before moving in and if so, how will you finance it ?
 
Why don’t you just sell and aim to complete the 2 deals around the same time?

We did that, there was a brief gap and we went on holidays
 
Annieindublin said:
Why don’t you just sell and aim to complete the 2 deals around the same time?

We did that, there was a brief gap and we went on holidays
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Realistically that’s very hard to organise. We’ve kids, animals and stuff. Not going to happen
 
misemoi said:
Will you qualify for a mortgage of 1m to buy the second based on your income and how much time you have to pay ? Will you do the work in your new home before moving in and if so, how will you finance it ?
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Yes. We will qualify no problem. We don’t have much work to do. Just need to make it warmer
 
Just be careful that there's nothing in the mortgage conditions that says your old property needs to be sold before you can draw down on the new mortgage. We were trying to do what you're planning and got caught because we didn't spot that condition and so had to sell up and rent for a bit before drawing down. Just something to keep in mind.
 
Thanks so much. That’s a great tip
 
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