mortgage/bridging loan advice..

[timetosmile]

We have £150,000 equity in our house worth £260,000 and a mortgage for the rest.
If we want to downsize to a house on sale for £180,000 but havent sold ours yet what can we do?
When we do sell, the outstanding debt will just be £30,000 - yes?
Do we get a bridging loan? Can we increase the amount borrowed against our current property?
Because we have a decent LTV ratio and the new house is so much cheaper, I would have thought we are a safe financial bet...but is it possible and how should I proceed?
Thanks

You don't have enough equity to borrow against your existing property for the new purchase, so you have 2 options.

1. A bridging loan - these are expensive and generally recommended for short term, so it depends how close you are to selling your current property.

1. Take a new mortgage on the house you want to buy - deposit either from savings or you can borrow extra on your existing mortgage for the deposit. Make sure you choose a product which doesn't penalise you for early settlement if you go for this option. Obviously this also means you need to pass the lenders affordability checks for running 2 concurrent mortgages.

Neither of these are particularly cheap, so the third option is pricing your property lower to sell quicker, you need to get a mortgage adviser to work out the figures for you on both options and see if you would be better off just going for a quick house move :)