House not ready for 18 months - position with mortgage approval

[amg63]

I have put down the initial deposit on a place that won't be ready for 18 months. It is roughly the same value as my existing house so getting a mortgage will be fine. What I'm wondering is do I need to get a formal mortgage approval now eventhough I think I woul dhva eto go back and do it over again closer to the time the house is ready?

When I spoke to Halifax about this they said that I should look at the possibility of keeping the 2nd house as an investment property. If I decide to do this does (depends on financial situation later) how does this affect the mortgage situation.

 

[ClubMan]

When I spoke to Halifax about this they said that I should look at the possibility of keeping the 2nd house as an investment property. If I decide to do this does (depends on financial situation later) how does this affect the mortgage situation.

You should be wary of taking investment advice from such sources. Of course keeping the existing property will have implications for your mortgage/debt/tax situation!

 

[shanegl]

Halifax want you to keep the house as an investment property so you'll take out a larger mortgage with them. Seek advice from an independant source.

 

[Sarah W]

Normally you are required to sign legally binding contracts within 21 days of putting down a deposit on a new property so you must have a mortgage offer in place by then. After that you can decide closer to the closing what is possible and what you what to do with regard to the existing house.

Sarah

www.rea.ie