Singing Pig

Hi there

I would welcome some advice from those more knowledgable than I.

I live in a house worth approx 375k. I have a 100k mortgage on it. There's also a further 60k borrowing facility which is currently unused. I want to move to a house currently on the market for 425k. I earn only about 12k per annum. What is the best way for me to raise the finance for the 'new' house. It will have been snapped up by someone else if I wait until my current property is sold which is not even on the market.

Any ideas or guidance would be much appreciated. 

Many thanks

Classyfied

Have I missed something???

£12,000 a year salary and a £100,000 mortgage....you jest, I hope !  My £37,000 mortgage was costing me £290 a month, so you must be looking at £600 for yours at least, thats more than half your salary.

I'm sure the brokers here will tell you you will only be able to get a £36,000 to £48,000 mortgage if your lucky, so you must have other income or your living way beyond your means and you wont stand a chance of moving up to a £425K property.

Hi

Sorry it was late! My salary is actually 21k not 12k. I know that's not much better, but I do dip in and out of freelance stuff to enhance my income when necessary and these amounts can be enough to cover a large mortgage, at least on a short term basis 

I used to do the property thing about 5 years ago and then was able to self certificate and get funds that way. Is this still an option or have things tightened up? I could meet the mortgage costs on a short term basis via the additional income I could get from temporary freelance work. I would also be able to rent out my current home for approx £800 per month and or remortgage it. So I don't think my plan is quite as hairbrained as perhaps i portrayed it in the early hours  of this morning!

Thanks for your comments Biill, and further guidance / comments would be most appreciated.

 Regards

Classyfied

Banks have now stopped throwing away their money, so I doubt you will find one willing to lend (today) to someone as stretched as you would be with two properties.

My advice - and it is worth what you paid for it - is to sell your property pronto, and get your hands on some real cash.   With such an amount of cash in hand, as you suggest you would have, you can look for some real bargains, as a cash buyer.  Personally, I would wait another year or two, when IMHO prices will be far lower in the UK than they are today.

But, hey, as the man from brooklyn put it, "Yous pays yer money, and yous takes yer chance."  If you can find better free advice, I suggest you take it.