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20-12-2018, 12:35   #1
newventure
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Trading up - dos and don'ts

Hi

We are looking to trade up soon.
We would be getting a mortgage for the new house as a 2nd time mortgage applicant as my wife bought the first place. Thus we would need a 20% deposit. It seems an unfair rule but at least the mortgage will be less.

We will need to sell our own place first I would presume. What is the best way of going about this? Should you move out (and rent elsewhere) and get the place in top nick or just let viewings happen while we live there. With young kids that would be an issue.

If we did sell we probably would have a small window to buy the new house. Is going for a new build the best option in this case as a deposit could secure and it might take a year for the house to be built. This would give us time to sell our own.

Has anybody been through this before?

Thank you
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20-12-2018, 13:53   #2
Cuddlesworth
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You can both sell and buy a house at the same time, its called a chain. But they tend to fall through a lot, meaning FTB or cash purchasers are usually preferred by sellers.

If you deposit is tied up in the equity of your wife's home, you can get a bridging loan off a bank, which you would use for the deposit on the house you intend to purchase.

For viewings, makes no sense to double up on expenses and rent. You clean the house, remove clutter(hide usually), take out any really personal or small expensive stuff and leave for a few hours.

For a new house, not sure but it would seem damm messy to do.
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20-12-2018, 14:13   #3
machalla
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You could seek an exemption so that you only require 10% deposit. Most banks will consider this, the worst they can say to you is no.

If applying for a mortgage the earlier in the year you do this the better as banks are only allowed a certain amount of exemptions per year.
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11-01-2019, 13:34   #4
newventure
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Hi again

We have about 10 grand saved up now. By this time next year we may have double that.

So we want to buy a new home. Let us say it is worth 300,000.

Our current place might fetch 200,000.

I would prefer to buy the new place, move in and then sell our old place after it has been painted and decluttered.

Is the above possible? Would the bank give us a mortgage for the 2nd place before we sell the first?

We have about 170,000 left on the mortgage.

What should we do with the 10 grand? Pay down the mortgage? It is getting no interest in the bank and our variable rate is 3% plus.

Also could holding onto the first place and renting it out long term be an option? It is in a good rental location.

Thank you
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