Hi everyone
Am trying to get it clear in my head what my options are and what the consequences of each would be. Any help would be great.
Goal: To buy the house I have falline love with and be debt-free.
Problem: My house is only just on the market and may not sell quickly (it had been on the market for ages when I bought it 5 years ago). This house is valued at €230,000 by auctioneer but I would be happy enough with anything exceeding €200,000. There is €59,000 left on the mortgage.
The new house is €150,000. Stamp duty is €4,500. Estate Agent €6,000 approx. Solicitor €2900.
So breakeven is €222,400.
I will need to borrow for the deposit of €15,000 as all my savings are in SSIA and use proceeds of the sale to pay this back asap. I was thinking that (depending on rate etc) that if I don't get the breakeven price for my house, and the shortfall is less than say €10,000, to use this loan as a "mortgage". It could be easier and more cost effective (solicitor and stamp duty wise), or am I missing something?
What if my house doesn't sell quickly and there are no contracts signed on the new house (thus ruling out bridging finance)? I could roll the €15,000 into a new mortgage on the new house but I don't fancy having two mortgage and the huge repayments (even if the bank would approve it). How about an endownment mortgage? Am I right in thinking that I would only have to repay interest and then a lump sum? Can you get these on a temporary/variable basis?
Are there any other options available to me?
Thanks in advance
Rebecca