Buying a new home without getting a mortgage.

[Snipersham]

Hi All,

I am going to put my property up for sale withing the next few months.
I have a substantial amount saved so i hope to use the money from the sale plus some of my savings to upgrade to a bigger house without the use of a mortgage (I hate banks).
My problem is one of timing i.e between selling and buying - I'd rather not cart the family off renting for a few months, If I can avoid it.
Could I get a bridging loan? Could I get a provisio on the sale of my own home that once sold We can stay for 1-2 months (while purchasing a new home) and pay the new owner of my home rent for those months? Is this possible?

Any thoughts?
Thanks in advance

Tom

 

[aristotle]

It is certainly possible to stay while you wait to close on a different house, one of my neighbours just did that. I suppose it depends on the buyer of your home if they are ok with it. If they are buying in order to rent it out I would say they like the idea but maybe not if they are buying as a home and want to move in ASAP.

There is certainly a bit of trust involved even with having a lease in place.

 

[Sarenco]

I hate banks...Could I get a bridging loan?

Sorry, I couldn't resist...

Joking aside, bridging loans (which were always ridiculously expensive) have largely gone the way of the dodo.

However, I think you are looking at this the wrong way. If I was you, I'd identify the house you want to buy, take out biggest mortgage you possibly can with EBS and close the sale in the ordinary course (making sure you pocket 2% of the amount borrowed as per their current offer). Then sell your current house and use the proceeds, together with the balance of your savings, to pay off the mortgage ASAP.

Effectively you get to buy your new house at a discount!

It's nuts but that's the way our banks want to do business at the moment.

Meanwhile, our esteemed Central Bank wants banks to produce meaningless policy statements on how they price variable mortgage rates.

 

[Snipersham]

Sorry, I couldn't resist...

Joking aside, bridging loans (which were always ridiculously expensive) have largely gone the way of the dodo.

However, I think you are looking at this the wrong way. If I was you, I'd identify the house you want to buy, take out biggest mortgage you possibly can with EBS and close the sale in the ordinary course (making sure you pocket 2% of the amount borrowed as per their current offer). Then sell your current house and use the proceeds, together with the balance of your savings, to pay off the mortgage ASAP.

Effectively you get to buy your new house at a discount!

It's nuts but that's the way our banks want to do business at the moment.

Meanwhile, our esteemed Central Bank wants banks to produce meaningless policy statements on how they price variable mortgage rates.

Hi Sarenco, Yeah i know it came across ironic, i was typing as i was thinking!!

Thanks for your suggestion, it's lateral thinking and one I had'nt considered.
I only work part time now (2 days a week) to spend time with my children so getting a mortgage to the value of my current abode would not be possible. but appreciate the effort!!

Thanks