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Mortgage

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  • 25-05-2021 10:48pm
    #1
    Dow99
    Registered Users Posts: 275 ✭✭


    I am trying to buy a house with the view of trading up, but although being the highest bidder on many an occasion the vendor has gone for a cash buyer or someone who doesnt have a house to sell ie "in a chain".
    I have just about enough cash to pay off my current mortgage, but it was my plan to retain my tracker mortgage and use my cash for any home improvements on the new property.

    I am reluctant with selling my house until I have gone sale agreed on a new property.
    If I was to pay off my mortgage and own my house outright, do I still need to cough up the cash for deposit for the new house, or would owning a house outright be considered collateral? I have no intention nor wish of having 2 properties.


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    #2
    Turkish1
    Registered Users Posts: 273 ✭✭Turkish1


    Dow99 wrote: »
    I am trying to buy a house with the view of trading up, but although being the highest bidder on many an occasion the vendor has gone for a cash buyer or someone who doesnt have a house to sell ie "in a chain".
    I have just about enough cash to pay off my current mortgage, but it was my plan to retain my tracker mortgage and use my cash for any home improvements on the new property.

    I am reluctant with selling my house until I have gone sale agreed on a new property.
    If I was to pay off my mortgage and own my house outright, do I still need to cough up the cash for deposit for the new house, or would owning a house outright be considered collateral? I have no intention nor wish of having 2 properties.

    Have had similar issues (without luxury of paying off current mortgage). Couple houses went to a lower bidder and a few more wouldn't even entertain an offer from us.

    Multiple EA's advised us that we would have to sell first - however I just wouldn't take that approach as wanted to mitigate risk of selling and not being able to find another house.

    What we ultimately did was get to contract stage on selling our own home - and had purchaser sign. We made it clear to our buyer that it might take a little time but that we would sell. Once sale agreed and things moving our bids were taken more seriously and have just today signed contracts on our own sale and also purchase of our new house (pending vendor signature)

    What is the stage of your sale? Is it on the market, have you bids, sale agreed, contracts etc.. if early on in process I wouldn't take your bids seriously either


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    #3
    Dow99
    Registered Users Posts: 275 ✭✭Dow99


    That's interesting and something to really consider, thanks!

    We lost out today even though we offered €20k more than the cash buyer.
    We havent got ours on the market. It was our plan to go sale agreed on the new house and then put our current home on the market, so now I'm trying to be creative with removing a step in the chain.


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    #4
    Marcusm
    Registered Users Posts: 10,320 ✭✭✭✭Marcusm


    Dow99 wrote: »
    That's interesting and something to really consider, thanks!

    We lost out today even though we offered €20k more than the cash buyer.
    We havent got ours on the market. It was our plan to go sale agreed on the new house and then put our current home on the market, so now I'm trying to be creative with removing a step in the chain.

    No seller would deal with you if you haven’t made the effort to sell your own if you need to do so to finance the new house. Forget about paying off the mortgage as it sounds as if you won’ have deposit money. Get your own house on the market and get it sale agreed with a decent period for closing. In that position, you become an acceptable bidder. As you stand, most people would not be at all interested in dealing with you as evidenced by the person who turned down your bid of 20k more. Have none of the estate agents said that to you?


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    #5
    Dow99
    Registered Users Posts: 275 ✭✭Dow99


    Marcusm wrote: »
    No seller would deal with you if you haven’t made the effort to sell your own if you need to do so to finance the new house. Forget about paying off the mortgage as it sounds as if you won’ have deposit money. Get your own house on the market and get it sale agreed with a decent period for closing. In that position, you become an acceptable bidder. As you stand, most people would not be at all interested in dealing with you as evidenced by the person who turned down your bid of 20k more. Have none of the estate agents said that to you?


    I think that largely depends on the market, but currently at the moment it most certainly is a sellers one. The estate agent has lined up 3 party's with a view to buy our house & this has been communicated back to the vendor. Obviously I do understand which would be the easier sell and more direct to close the sale. But yes, I agree with you and the previous poster with going sale agreed on my house first, it might be the most prudent approach. Thanks


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