Can you buy a house when you haven’t sold yours yet?

Have you found your dream home but haven't sold your current house yet? This can be tricky!

Many families face this challenge when moving. The good timing of buying and selling doesn't always work out perfectly, but there are solutions to help you through this process.

Why timing matters when buying and selling homes

When you're trying to buy and sell at the same time, things can get complicated. You might fall in love with a perfect new home while still waiting for someone to buy your current house. Or maybe someone makes an offer on your house, but you haven't found a new place to live yet!

If your sale and purchase don't line up perfectly, you could face extra costs or even risk losing out on the home you love.

Options when you haven't sold your home yet

If you’re set on purchasing your new home, but yet to sell your existing one, you may want to consider the following:

Try to delay your purchase

If possible, you could ask the sellers of your new home if they can wait a little longer. This works best if:

• You've already received offers on your current home
• Your home sale is close to finishing
• The people selling you the new home are willing to be patient

Sometimes, if your current home isn't selling quickly enough, lowering the price a little bit might attract more buyers. This might seem like losing money, but it could actually save you money compared to other options like bridging loans (explained below).

Consider renting out your current home

If you really don't want to lose your new dream home, you might think about renting out your current house while you continue trying to sell it. This could help pay for some of your expenses. But remember:

• You must ask your mortgage company for permission first – They’ll need to provide you with ‘consent to let’ if just for the short-term. If longer, they may change your mortgage to a ‘buy to let’ agreement
• Having tenants living in your home might make it harder to sell later

Look into bridging loans

A bridging loan is a special type of short-term loan that "bridges the gap" between buying your new home and selling your old one. These loans:

• Help you buy your new home before selling your current one
• Usually have higher interest rates than regular mortgages
• Work best when you expect your current home to sell quickly
• Typically require a good credit score and you can usually borrow up to 75% of your home's value

Watch out for extra taxes

If you buy a new home before selling your current one, you'll technically own two homes at once. This means:

• You'll have to pay higher stamp duty rates (an extra 5% on top of normal rates)
• You can claim back this extra money if your old home sells within three years
• You need to make this claim within 12 months of the sale

Check important details

Make sure you consider the following points before making any decisions about delaying your property sale:

Mortgage offer expiration

If you decide to delay buying your new home, check when your mortgage offer expires. Some lenders will extend offers, but not all of them. Also, if house prices change during the delay, your lender might want to review their offer.

Access to funds

Most people need the money from selling their current home to pay off their existing mortgage so they have enough for a deposit on the new home. Without selling first, you'll need to figure out how to bridge this financial gap.

When should you buy before selling?

Buying before selling works best when:

• You've already received serious interest or offers on your current home
• The sale of your current home is close to completion
• You can afford the extra costs of owning two properties temporarily
• You really don't want to lose the opportunity to purchase your dream home

Points to consider 

Remember, if you do decide to buy before selling, you’ll likely have to pay two lots of the following:

• Mortgage payments
• Council Tax
• Utility bills – Most have standing charges even if not using
• Home insurance
• Maintenance costs

Finding the perfect timing when buying and selling homes can be challenging. The property world often involves delays, and things don't always go according to plan.

If you're in this situation, weigh your options carefully, consider the extra costs involved, and choose the solution that works best for your needs and financial situation.