Hi all. Have a question for you. Is it ok to have 2 mortgages at the same time?
Here's the facts. Looked at a house with 9 acres of land today that the missus and myself have fallen in love with. I get the feeling that I can get about £15k off the asking price if we can move at a reasonable pace IE: No chain. so here's my cunning plan with the actual numbers.
First our existing circumstances:
Myself:
Full time employed, stable job, £42k basic with an average of £6000 overtime on top P.A. Overtime figure based over last 3 years.
Missus:
Partially disabled, stay at home housewife, usual DWP benefits.
Existing home:
£120k -ish value, mortgage outstanging £85k, 15.5 years left on mortgage.
Monthly payment £623
Now the new place:
£300k asking price - but if we can move reasonably quickly on it probably £285k or even a little less..
Deposit on hand: £195k - from savings and sale of land that will be completed next week.
Mortgage required: £90k
LTV: 30% or so.
Average monthly payment approx £630 on a 15 year mortgage fixed term 5 years.
Now what I would like to do is this:
Pop the offer in on the new place and when accepted sort out another mortgage for the £90k and proceed with the sale.
Then put our existing home on the market for sale and if it's not sold by the time we are ready to complete on the new place then possibly get short term tenants in whist awaiting a sale.
I know that means I am servicing 2 mortgages to the tune of £1255 for what is hopefully a short term. I can afford to do this as I usually save £650 - 700 per month anyway and of course getting in short term tenants in will halp with this a little.
Can anyone see any problems with my cunning plan? :)
Cheers all.
Psi
Here's the facts. Looked at a house with 9 acres of land today that the missus and myself have fallen in love with. I get the feeling that I can get about £15k off the asking price if we can move at a reasonable pace IE: No chain. so here's my cunning plan with the actual numbers.
First our existing circumstances:
Myself:
Full time employed, stable job, £42k basic with an average of £6000 overtime on top P.A. Overtime figure based over last 3 years.
Missus:
Partially disabled, stay at home housewife, usual DWP benefits.
Existing home:
£120k -ish value, mortgage outstanging £85k, 15.5 years left on mortgage.
Monthly payment £623
Now the new place:
£300k asking price - but if we can move reasonably quickly on it probably £285k or even a little less..
Deposit on hand: £195k - from savings and sale of land that will be completed next week.
Mortgage required: £90k
LTV: 30% or so.
Average monthly payment approx £630 on a 15 year mortgage fixed term 5 years.
Now what I would like to do is this:
Pop the offer in on the new place and when accepted sort out another mortgage for the £90k and proceed with the sale.
Then put our existing home on the market for sale and if it's not sold by the time we are ready to complete on the new place then possibly get short term tenants in whist awaiting a sale.
I know that means I am servicing 2 mortgages to the tune of £1255 for what is hopefully a short term. I can afford to do this as I usually save £650 - 700 per month anyway and of course getting in short term tenants in will halp with this a little.
Can anyone see any problems with my cunning plan? :)
Cheers all.
Psi