Getting back onto the ladder after renting

[Madinitials]

Our house sale is moving very quickly and our buyers want to be in within the next few weeks. Since we haven't found our own new home, it is likely that we will have to rent or move in with parents in the time between sale and purchase. We have a good deposit (at least 30%) and the mortgage has been agreed in principle but, in this financial climate, I'm concerned that the lender may change their mind during our time off the ladder.

Has anyone had this happen to them?

Do you need to move? If you can't continue living where you currently are then it doesn't make a difference: if it takes you 3 months to find somewhere new then that's how long it takes, irrespective of whether you have your current house or not, and its unlikely that whether you own or rent will come into it.

If you don't really need to move but just want to step up the property ladder then yes you do risk ending up renting for a prolonged period if your circumstances change/lender changes lending criteria. But life's a risk.

You will be a more attractive buyer if you are chain free of course: we moved from a rented house and our bid was successful because the vendor preferred our chain-free status. There were others prepared to offer as much as we were, but they were part of a chain.

I agree with the previous poster. Of course there is a risk associated with coming off the property ladder but at the moment, I'd anticipate that you'd be in a very good position for purchasing in the future with a good deposit (even if the mortgage offer is withdrawn if you don't proceed in the next couple of months). Any disadvantage you might face from the bank in the future (maybe a higher fee / interest rate if rates rise) will probably be compensated by the "deal" you're likely to be able to do by being chain free. Even if it doesn't come down to saving you money by being chain free, it certainly puts you above the competition if there is alot of interest in a property you want.

We came off the property ladder in April 2008 - initially because we were moving areas and couldn't find anything we liked in our price range and thought we'd rent for 6 months. With the property market the way it was, we ended up renting for 2 years. When we did come to buy, our house went to sealed bids and our "chain free" status went in our favour and we got the house.

only got a postive story - we had a very quick sale and no where to go so ended up renting. Did so for over a year but managed to snap up a great house with lots of competition (sealed bids) as we were in the best situation. Estate Agents told vendor to go with us basically as we were the most risk free option. Worked really well for us - pretty sure we wouldn't have got it otherwise (things pretty buoyant here)