Advice pls

[MrsM787]

Evening
After some advice -

Seen a home we have liked and wish to put an offer on. It's on sale at £400k and we are thinking of starting with an offer of £350k.
You may think it's v low but my mortgage broker said it's no way selling at £400k at current market. They have had two offers accepted in the past 6 months at asking price but they both fell through. Plus a third one yesterday but buyers withdrew this morning! It's been on the market since august23.

We have the deposit saved for it but there stamp duty will be around £16/18k depending on what's accepted. This is the sim we don't have at the moment - and will need a further 5/6 months to save for this. At the same time we don't want to lose out on this home as it ticks all out boxes on terms of requirements.

We would also be renting our current residential home out on a consent to let as unsure if we will be selling it in the near future ( not at the moment as we will not get what we want for it)

My question is will we be able to borrow some money form our current home citing home improvements and without pre informing our lenders on our plans and will this affect our main mortgage application?

Hope this makes sense

Thanks

There’s a lot of questions here and I can’t answer all of them but I will bump your post and give my opinion.

When I started to read your post I thought £350k was a reasonable offer on a house that has been on the market since August. However, then I read that they have received 2 asking price offers that fell through & another one just yesterday. This house is attracting interest & offers so I doubt the owners will go as low as £350k, though you can of course try.

A much bigger issue is that you are not proceedable and have a complicated plan for raising funds without selling your existing house. Why don’t you just sell your current house as most people would in your position and upgrade to a better one? I understand that you won’t get what you want for it but you need all the funds you can raise and since you are upgrading, you will overall benefit from house prices being stagnant. You may receive a few grand less than if you had listed in the boom years of 2021/22 but you would have paid more too on the next house.

Because you aren’t proceedable, the owners would be very unlikely to accept your offer even if it was pitched higher. You shouldn’t be making offers on any houses until your own is at least on the market and preferably under offer.

If I was the vendor and my house sale had fallen through 3 times I would want a firm offer from a reliable buyer.
Ie. Buyer with 40% cash deposit and no chain (or maybe closed chain of 1/2 at a push)

There is NO way I would accept or entertain any offer from you.
You aren't proceedable.
You don't even have an AIP from a bank and your plan to fund is something you'd need a specialidy broker to help with.

And that's before getting into

1. Accepting £350k on a house with multiple 400k offers
2. the cans and cannots on lending and your "plan" to lie to the bank finance...

Yeah, sorry OP but I’d let this one go. The sellers will not sell to you as you want to buy at substantially under the asking price without actually being able to finance the purchase properly.

You can probably lie and take out money from your existing house to pay the stamp duty if you already have a mortgage offer for the new place but there are usually heavy penalties if you do not inform them of any changes in circumstances that could affect your ability to repay the mortgage and increasing your mortgage on a second property would fall into that category.

It’s a moot point anyway as I’m 99% sure the vendors would not sell to you in your current circumstances. There will be other properties though so don’t worry about letting this one go.