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Will the bank extend our mortgage to cover a few months of renting?

(13 Posts)
seoladair Wed 02-Oct-13 12:09:32

Due to a tricky lease extension, it's going to be a while before we can move into our new property, (or even exchange contracts). My husband wants us to live for a few months with his mother, but for various reasons, I really don't want to do that.

He has agreed to pay the vendor a big contribution towards her lease extension costs, which means that there is no money left to rent a place in the interim. I feel I am being bounced into staying with his mother.
In this situation, is the bank likely to enlarge our mortgage by a few thousand to allow us to rent for a few months?

AnythingNotEverything Wed 02-Oct-13 13:03:20

I'm not sure I understand. If you haven't yet exchanged contracts (never mind completed) why would the bank lend any money against a property you don't own yet?

Do you mean a different/existing mortgage?

50shadesofmeh Wed 02-Oct-13 13:11:11

I wouldn't have thought so unless you had equity in the property already . I don't understand why if you are paying the vendor to lease why you can't then move in??

AKissIsNotAContract Wed 02-Oct-13 13:12:52

Why are you paying to extend a lease on a property you don't own yet? The vendor should pay.

PigletJohn Wed 02-Oct-13 13:59:35

until you exchange contracts, you should keep looking.

seoladair Wed 02-Oct-13 17:08:21

We'll receive over £300k soon when we complete on the sale of our property. I want to take £5k out to cover cost of renting for a while.

Vendor will pay only half the cost of lease extension. We had offered to pay another £10k on top of purchase price to help her. Then I was away out of mobile contact for a day, and my husband increased the amount, and left no money over for rent.

Property is still a bargain even after we pay half of lease costs. That's why we're doing this. But I'd have liked my husband to check it with me. Anyway, that's another thread.....

The question is, are we likely to be able to increase our borrowing by £5k if we have cash of £310k set and a remaining mortgage of about £100k?

poppy1973 Wed 02-Oct-13 17:11:25

I doubt the bank will agree to mortgage - why not speak to the bank with possiblity of taking a small loan out for £5,000 for the short term. Can you borrow anything from family for rent ?

50shadesofmeh Wed 02-Oct-13 18:38:41

You could put less of a deposit in to the property and borrow more from the mortgage provider as long as you aren't at the top of what you can borrow

seoladair Wed 02-Oct-13 19:26:19

50shades - this is the bit I'm not sure about. The mortgage provider limited us to properties around the £405k mark, which is almost exactly what we're getting now (as my husband upped his offer without asking me as I was in an area with no mobile coverage for a few hours..)

ginmakesitallok Wed 02-Oct-13 19:29:35

How much were mortgage provider going to lend you though?

50shadesofmeh Wed 02-Oct-13 19:30:56

Do you have a mortgage offer?

ModeratelyObvious Wed 02-Oct-13 19:32:06

Some credit cards would do an interest free advance for that amount. You'd want to be sure you could repay it in the time though.

seoladair Thu 03-Oct-13 00:13:20

Yes, we have a very good mortgage offer (1% over BOE base rate, which you can't get now,) and we are allowed to port it within a 3-month window after completing on our current place.

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