Exchange old house before new house?

16
Found 25th Oct 2017
Hi,

we accepted an offer on our house back in August, at the time we were still looking at new builds. Shortly afterwards we reserved a new house, we agreed to buy using help to buy but the builder had to apply for Help to buy. This ended up taking 10 weeks, in the mean our buyers and the bottom on the chain the couple buying their house, kept putting pressure to exchange despite us not being in a position to.

help to buy has been approved, I’ve been accepted and I’m in the process of applying for a new mortgage. I think it should all go through but nothing is set in stone.

problem is our buyers want to exchange on Friday (day after tomorrow) and complete two weeks later. If we don’t they’re completing and will exchange move into rental accommodation.

If we agree and exchange Friday, but something goes wrong or we can’t secure mortgage, then we’re left homeless! If we don’t we risk loosing our buyers and in potentially due to this risk losing our new house!

ive got a meeting tomorrow with the mortgage advisor from our existing mortgage company. Hopefully they’ll be able to advise how likely we are to get the mortgage.

Any advice would be great
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16 Comments
Your text is sometimes a little unclear but do you realise the timescales involved in each stage of buying a property? It doesn’t sound like you do. Once your mortgage has been agreed to which you haven’t even secured yet, the conveyancing process starts which can take weeks or months before you can exchange.
Edited by moderator: "removed personal info" 25th Oct 2017
Conveyancing process is pretty much sorted, searches have been applied for and returned while awaiting the help to buy.

Were here happy to exchange once we know it’s certain and we’ve secure 100% the new house,but worried about doing it before.
benjammin3166 m ago

You will get better answers on the MSE house selling forums here - …You will get better answers on the MSE house selling forums here - http://forums.moneysavingexpert.com/forumdisplay.php?f=16Loads of helpful people


I find Reddit more useful. Ukfinance or askuk would be good subs for this.
Ask yourselves why you are selling.

If your buyers proceed at their timescale - you won't be homeless, you will have sold your home and be free to buy.

If you fail to agree with your buyers and they go elsewhere - you won't be homeless, you will still be in your OLD home.

Which do you prefer?
Checking you can get the mortgage is the very first thing you should have done! It can take months.

I also thought the help to buy scheme was for first time buyers only.....
If you are still behind in the process, pay the new buyer rent to rent your old home. You don't really want to mess around with them. Also when everything is signed up you have to move out the same day in office hours.
You've accepted an offer on your house, and have reserved a new property, but haven't got a mortgage set up yet?

If I was the buyer I'd be a tad annoyed and would be pushing for an exchange date.


BUT this doesn't help your predicament and you will have to hope mortgage goes through swiftly.

Options I see are ;

a/ move into rented accommodation until either 1/ your new property is ready or 2/ you find a new property.

b/ stall your prospective buyer further until your mortgage is set up (this would surely involve you moving into rented accommodation anyway..? unless you can stall your buyer until your new property is ready).
chocci3 h, 26 m ago

Checking you can get the mortgage is the very first thing you should have …Checking you can get the mortgage is the very first thing you should have done! It can take months.


My latest mortgage was done entirely over the phone, after my initial call that lasted a few minutes I was given a phone appointment 2 days later, that call lasted 1 hour where I was offered the mortgage, no waiting months for me.
The most important thing here sounds like getting the mortgage approved. Until that has been done, you are not in a position to exchange. Why have you waited this long to apply for the mortgage?

It sounds like your buyer has realised that you are not serious so they are going to plan B as they want to complete on their property sale.


The way I see it, if you really want to sell your property now, you exchange and move into rented accommodation or you wait until you are more organised before accepting a purchase offer again on your property.

Property prices are going down slowly at the moment and it is harder to sell so think carefully before pulling out and losing your buyer
paulj481 h, 21 m ago

My latest mortgage was done entirely over the phone, after my initial call …My latest mortgage was done entirely over the phone, after my initial call that lasted a few minutes I was given a phone appointment 2 days later, that call lasted 1 hour where I was offered the mortgage, no waiting months for me.


It all depends on your financial situation, how much you are borrowing, LTV that you are taking, then there is the lender valuation process, so a minimum of a month for a standard mortgage application.


You can get offer of mortgage in principle within a few days but that is not the actual mortgage approval, which can be a lot less than the amount agreed in principle, if the bank values the property a lot less than the estate agent
paulj482 h, 36 m ago

My latest mortgage was done entirely over the phone, after my initial call …My latest mortgage was done entirely over the phone, after my initial call that lasted a few minutes I was given a phone appointment 2 days later, that call lasted 1 hour where I was offered the mortgage, no waiting months for me.



Thats a mortgage agreement in principle. The mortgage company's surveyor & solicitors are what can take months.

Either way, there is simply no excuse for agreeing a sale & a purchase and at the last moment, look into actually seeing if you can get a mortgage.
Edited by: "chocci" 26th Oct 2017
Misslovely4 h, 18 m ago

If you are still behind in the process, pay the new buyer rent to rent …If you are still behind in the process, pay the new buyer rent to rent your old home. You don't really want to mess around with them. Also when everything is signed up you have to move out the same day in office hours.



How is making the buyer have to rent elsewhere not messing them about?
tbh you shouldn't have accepted the offer without you were in a position to buy within a few weeks or so, or at least lined up temporary accommodation.

It's 3 months, which is 3 months everyone else in the chain is having to live and pay for there "old" house.
How would you like it if after you get the mortgage ready and new build is ready, someone holds you up for 3 months then says I'll need another month?

If you delay any longer your really risking the chain falling then your back to the drawing board.

If you want your house sold get looking at temporary accommodation and start packing.
If your not too fussed then stall and cross your fingers, toes and hope it doesn't fail through.
Either way chase the mortgage provider and ensure they have everything they need to process the application as quickly as possible.
Wow there are some sanctimonious people on this forum.

With Help to buy, you can’t apply for a mortgage till you’ve been approved by them, before I can apply I had to wait for the builder to register. Before I applied i completed affordability with my mortgage company and HTB. Our buyers were aware and happy to proceed on that basis. It’s their buyer who I think is putting pressure/ultimatums on.
borat123449 m ago

Wow there are some sanctimonious people on this forum.With Help to buy, …Wow there are some sanctimonious people on this forum.With Help to buy, you can’t apply for a mortgage till you’ve been approved by them, before I can apply I had to wait for the builder to register. Before I applied i completed affordability with my mortgage company and HTB. Our buyers were aware and happy to proceed on that basis. It’s their buyer who I think is putting pressure/ultimatums on.



It's a buyers right to put pressure on the seller, if the seller stalls too long a better property might come up so its in the sellers interest to complete the exchange asap.

I'm presuming your appointment went well and things are progressing....?

I still see you only options being ;

a/ move into rented accommodation until either 1/ your new property is ready or 2/ you find a new property.

b/ stall your prospective buyer further until your mortgage is set up (this would surely involve you moving into rented accommodation anyway..? unless you can stall your buyer until your new property is ready).
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