Moving / mortgage question

[Wudgy]

Hi looking some advice please, currently have a mortgage of approx 100k left on property valued at 200k. Would like to move to a house asking price about 290-300k- all parties interested in this particular house are in a chain with property to Sell. We would have to put ours onto the market to sell to enable us to put in an offer. However another option to make us more desirable aka chain free would be for us to pay off our mortgage ( have almost this saved ) so our current house would be mortgage free to enable us to apply for a new mortgage on the new house -we could borrow 100k short term from family to enable us to apply for £200k mortgage ( 100k deposit, 200k mortgage) then when our current house sells repay this to family and use the other money to pay off some of the mortgage / remortgage in year or two. What do you think? Very complicated and far fetched/ too much effort just to try to get a sale agreed ? Any advice appreciated! Thank you

Far too much effort. Use the cash you have to up your offer if you want it that much.

if you have £100k saved you can probably get accepted for a new mortgage without having sold the previous property. I would ask your lender how much they would lend you for a new mortgage on this property, temporarily converting your current mortgage to interest-only and putting down your £100k savings as deposit on the new property. you are then not in a chain and are attractive buyers, and can sell your old property as a separate non-chain transaction and the proceeds will pay off the old mortgage and replace your savings.

I suspect that you'll be hit for second home stamp duty for a start! An extra 3 per cent on top of the normal rate.

How quickly could you pay off the mortgage and borrow the money? Personally speaking, I wouldn't find that arrangement tempting if I was the vendor.

Are you panicking a bit because you've seen something you want and your own house is not even on the market?

May only be able to get one residential mortgage at a time as well, so if you hold two mortgages one may possibly be at a higher rate.

But you still need to sell, I think it would be incredibly stressful for you having to sell within a timeframe to pay back family member, more so than just trying to sell quickly now.

Not to mention two lots of Council tax and bills - honestly OP, I'd sell the house! It is going to cost you so much more to have two houses at the same time!

Realistically you will need a week or two to get your current home on the market then an unknown time frame of finding a buyer and sale to go through, if all other parties are already on the market they may well accept an offer and be able to negotiate an offer on the house you're after before you even get yours online, have you been thinking of moving anyway or is it just this house that has prompted the move?
Either way, I would start to pay off your current mortgage the less time you have a mortgage the less you will pay in interest.

Be aware of second home stamp tax duty!!

Thanks yes you are all making great sense and absolutely right, we were thinking of putting ours on the market just delayed for a few reasons and then this house came up which spurred us but as previous poster mentioned the other parties are all already on the market and will likely negotiate so we will let it be and accept it’s unlikely that house could be ours. Thanks for the advice!

We thought of doing something similar when one of our own house sales fell through! That was a while back, so the extra stamp duty wasn't even an issue then.

Good luck with the sale of your own property if you decide to put it on the market OP, I hope it goes well for you.