Retired and downsizing: can we get a mortgage before current home sells?

[LancashireButterPie]

DH and I have seen a lovely house in a great village closer to one of our DCs and their family. We are retired and this will be a considerable "downsize" for us.
We have enough in savings to cover the deposit and a few years mortgage repayments whilst we get our current home on the market. Current home is owned outright, is in good condition and we think it would sell quickly as others nearby have been snapped up.
Am I being delusional to think that we are in a position to move and that we would be able to get some sort of a mortgage until our current home sells? Our current home is not on the market yet and to be honest, until we saw this amazing little property, moving was just an idea.

I think you should see a financial advisor to get the best advice. Friends of ours did this last year and it took 11 months for their old house to sell, very costly.
Bear in mind that you will pay extra stamp duty on the purchase of the second house. Also there could be CGT to pay on your current house when you sell, the situation regarding this is a bit unclear as you’re given a period of grace to sell.
i know all this because we have considered this route ourselves.

My son is doing the same. He has had an offer accepted, mortgage agreed and will move before selling the house he currently owns. His house is below the stamp duty rate and I think he has also been advised that even if it wasn’t he has three years to sell if he wants to claim back the stamp duty for a second property.

He has used a broker to source the mortgage.

Saying that my MiL rang one Saturday morning and said he had seen a bungalow she wanted to buy. I carefully explained that it wasn’t as easy as that, she really needed to sell her. (No income other than pension).
She contacted the agent who was selling the bungalow, he looked at his list of clients and matched her house with a buyer.
By lunchtime she had accepted an offer on her own and had an offer accepted on the bungalow! It completed 7 weeks later! It can be done!

Put yours on the market. It’s the simplest way to do it. Also, unless you have a decent income you will struggle to get a mortgage once retired.

Why wouldn't you just get your house on the market straight away? You think it will sell quickly so there shouldn't be a problem. That would make much more sense than trying to get a mortgage when you are retired.

Make an offer and get your for sale just like a regular house sale/purchase

You'll need to consider 2nd home stamp duty if you own both at the same time

Just view the other property and get yours on the market asap.
Good luck OP.

And high second home council tax, and other bills that don’t stop just because you’re not living there.

Sell your own home first, then house hunt for the new one.

@LancashireButterPie incorrect info. Yes, you would pay the second home stamp duty but can reclaim it as long as you sell your current main home within 3 years.
And no CGT payable on your current main home when it sells as long as it is nominated as your main home while you own two. Then the new home will be your only home so won't attract CGT. You should also be okay with not paying second home council tax as long as your current home is on the market, there's usually a 12 month grace period.
It is all a bit complicated but your conveyancing solicitor should clarify everything.
And no issue with getting a mortgage for the new place as you don't have a mortgage already but might need a specialist product as you are older/retired.
Good luck, it's all doable!

We did that very thing 7 years ago. If you go to a mortgage broker they will give you the options.

We ended up not selling our old house- we rented it out because the market changed and it didn't sell -we thought we'd do it for a few years but it's still rented out as it's a bad time to sell at the moment. The rent there more than covers the mortgage here

Rent your house out. If you don’t like the new one you can go back and sell that one.

Potentially, yes. Depends on your income.

But best would usually just be to get your home on the market asap and try to line the same / purchase up.

If you currently have a mortgage it is possible to port your existing mortgage to a different property.

Thank you, the reason we can't hang around to sell our own home first, is that the estate agent said they have high interest in the new property and are confident it will sell immediately, therefore they are only accepting viewings for people in a position to move straight away.
We love our family home but the time really has come to down size. The only problem is that we want a smaller property but with a decent garden, parking and in a specific area.
I don't want to sell our home and then find that there's nothing suitable on the market! I guess it's the same for everyone hoping to move.

It says in the post that there is no mortgage

Thanks, we have paid the mortgage off and own our current home.

You need to talk to a broker, they will know what options are available for retired people. As a non-expert I would have thought you could do some sort of equity release on your current property to get the cash to pay for the new one. Then pay the equity release off once you have sold. You're definitely into specialist territory though, so give London & County or similar a call and talk to the experts.

A lot of people won’t accept offers unless buyers house is at least on the market! Given the turmoil in the world, the house market is going to stagnate!

If you aren't able to secure the new home, take yours back off the market again in that case.

I don't think you would get a mortgage to be honest. But worth asking an advisor. My BIL is in finance and said our my MIL would need to do something similar to what you want if she bought and said she would need a bridging loan. He said partly her age would mean no mortgage. But also mortgage lenders won't give you a mortgage you can just pay off in full 6/12 months down the line. Maybe look into that too

If you don’t want another mortgage you could look into a bridging loan - that will require payment in full at a specified time frame - usually at the point of sale for your house.