Cant afford two mortgages
2006-08-15 06:22:58 · 28 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Rent one of the houses. Purchase it as a rental property. Talk to someone about how the taxes work out for that situation, because you'll be receiving income from rent.
2006-08-15 06:25:35 · answer #1 · answered by Anonymous · 1⤊ 1⤋
I was going to suggest an interest only mortgage, which you could pay off when your house is sold. Shop around, Halifax do one without a penalty for early repayment, but you would need to put a percentage down, so this may not be an option.
Another alternative is bridging from your bank at some horrendous interest rate and vile penalty clauses, but this could turn into your worst nightmare so I really don't recommend it.
Get your house on the market asap, when getting it valued ask for a valuation to find a buyer in about 8 weeks. then stretch out the buying process as long as possible whilst putting pressure on your buyer to get a move on. The worst buyers are first time buyers who have not got their mortgages arranged in principle, and the best, of course, are those with nothing to sell.
good luck, but remember there are other dream houses which have not yet come on the market
Lulu
2006-08-15 13:51:54 · answer #2 · answered by Lulu 1 · 0⤊ 0⤋
Don't purchase it as rental property! That will cost you. Intead do this: refinance your current home- telling the lender that it's your primary residence (it is)- you'll get a much better interest rate than if you tell them you intend to rent it out. When you re-fi, take out all the equity you can. Use that money as the down payment on the new place. When you get the mortgage for that place, you cna use expected rental income from your first place to help you qualify. As soon as you move, find a tenant for your old place. Even if it doesn't cover the mortgage payment 100%, at least you'll be able to afford both that way. Good luck!
2006-08-15 13:30:38 · answer #3 · answered by W. Coastal Eddie 3 · 0⤊ 0⤋
You can have a LET TO BUY (NOT BUY TO LET) mortgage which means you let your house out on a rental basis and use the equity as a deposit for the new one, finance is up to 95%. Need any help e mail me. Good Luck. Don't listen to scare mongers, you do not need to afford it, the rental property will become self sufficient, you only need to be able to afford your new property. I have 10 properties and cannot afford all those, but I don;t need to they afford themselves. I only need to afford the one I live in, they are a source of capital should I need it, by selling one off, or remortgaging. You never get rich if you stay afraid
2006-08-15 14:48:04 · answer #4 · answered by MSMORTGAGE 3 · 0⤊ 0⤋
Your two options would be to:
1. Take out a buy to let mortgage on one of the properties, depending on the equity you have on your existing one.
2. Take out a bridging loan on your new property, which would be expensive, and could be like having two mortgages - which you say you can't afford.
2006-08-16 02:05:58 · answer #5 · answered by nemesis 5 · 0⤊ 0⤋
If you can't afford it, you can't afford it. I've been in that situation, where there was a house I dearly wanted to buy, but I couldn't sell mine fast enough. If I could have, then I could have paid the whole shot - no mortgage. But sometimes things aren't meant to be.
2006-08-15 13:27:58 · answer #6 · answered by theophilus 5 · 0⤊ 0⤋
Some real estate companies will buy yours allowing you to make your new purchase. Check that option first. Another would be if you rent your present home while it's being marketed. Would give you the money you need to pay your new mortgage payment. Good Luck!
2006-08-15 13:27:36 · answer #7 · answered by Anonymous · 0⤊ 0⤋
If you can't afford two mortgages then you could be in trouble. Renting one of the houses could have its pitfalls, you will have maintenance on two houses to take care of, and if the rented house is vacant for any period of time you will still have to pay the mortgage and taxes on it.
2006-08-15 13:30:26 · answer #8 · answered by ? 6 · 0⤊ 0⤋
Try and sell your home as soon as possible. You will not qualify for a mortgage commitment without a contract on your current house, and without a mortgage commitment, you wont be able to get a contract on your new house.
2006-08-15 13:28:09 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Hello I'am a loan specialist and there are plenty of ways to do this. Can you afford to pull out a line of equity? Is your house already on the market? Send me an email with a little more detail regarding your situation.....
2006-08-15 14:31:04 · answer #10 · answered by starlit l 1 · 0⤊ 0⤋
well with the cost of houses going up you can buy the new house and sure you'll loose a lot of money paying for both mortgages but after you sell your old house you should have enough money pay off what you owe
2006-08-15 13:31:46 · answer #11 · answered by corey k 1 · 0⤊ 0⤋