[Anonymous]

Has anyone used the product, Sun Mortgage, being offered by UCI (part of the Bank of Santander Group), which enables you to purchase another property whilst trying to sell your own?

I am considering using this and would be grateful for any comments please. Thank you in advance.

Barry

[katy]

Is this like the bridging loans…sounds like a dangerous way to go given the present climate!

[Anonymous]

Hi Barry

What you are talking about is called a change you house mortgage

how it works is as follows

1. The bank value our existing property
2. They will value your new property (in the case of Santander, providing you have had a mortgage with the same company for six years they will do the change over on the existing mortgage without charge)
3. They will give upto 80% of the value of both properties
4. They provide an interest only period of up to 2 years
5. when you sell the property you pay back the first mortgage

The problem of course is that
1. you then have two lots of mortgages you need ot pay.
2. Even though you get an interest only period of two years this amounts to around 35% reduction of the total cost.
3. If you dont sell your house in two years then you will pay capital as ell
4. The interest may well go up again in that period – what will you do then.

So if you are looking at htis way of doing things – and UCI are one of the better options, but try Banco Santander direct as they will offer it also and at a rate of Euribor `0.35% – you need to ensure that you can pay for both mortgages in the worst case scenario – calculte your payments at 7% interest rate on the two mortgages and this will ive you a good worst case scenario

Another possibility is Caixa Catalunya. Not sure this is something they offer to everyone and I only found out about it when I was looking to finance a large PV project. However they offer a change your house mortgage at 2.1% intert only for upto five years.

If you cannot find this in your local branch ten drop me a line and I will put you in contact with the branch I know are doing this

Best wishes

Vince

[Anonymous]

Hi Katy and Vince

Thank you both for taking the time and trouble to reply to my query. This is something I will certainly “dig deeper” into and have already started to research.

Thanks again.

Barry

[Author]

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