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    MrJones&Me's Avatar
    MrJones&Me is offline sometimes as useless as the 'ueue' in queue
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    Default Buying an off the plan house/building... When you already have a mortgage?

    I'm wondering if this is the area or the correct people to ask.

    We are looking at moving in the next 6 months, and we are seriously contemplating building, or buying an off the plan house (long story, I can give more details about that if needed)

    What I want to know is, how does the finance side work? Do we need to have two mortgages and pay both until the house is built & we can move in & sell ours? The off the plan house has no instalment payments, just the deposit (we will have that in our equity) so is there a way to get the finance approval, but not have to pay two mortgages unless we don't sell our house in time for settlement? Or will we have to rent while our house is being built to avoid two mortgages, and would that impact on our ability to get a mortgage again?

    Thanks for reading my million & one questions I hope you can help!

  2. #2
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    If you are buying off the plan, all you need is a holding deposit until the property is near completion, which at that time you will need to apply for finance to complete the sale when the property is built. If you decide to build you will need to apply for a construction loan which you will need to pay off as you go. You can opt for interest only whilst the property is being built and you only pay what you have drawn down from the loan.

    The decision as to whether or not to sell now and rent, or pay both mortgages would depend on your current financial situation. Here at Debt Fix, we have assisted thousands of people and we would love to assist you but first we will need to speak with you, examine your situation so that we are confident the options we present are relevant and suitable.


 

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