We live in the UK, and are seeking to move house and have seen a property which suits our requirements and has been discounted because the owners wish to sell quickly. The asking price is £400,000.
Our property has not sold - it's only just gone on the market at £370,000. But we are lucky enough to own it outright, mortgage free. We would be looking to sell it should we move, not to hold onto it.
In addition, we are fortunate to own another property, a flat, which is worth about £130,000 and from which we receive a modest rental income.
We can pay a 10% deposit on a mortgage for that £400,000, but our current salaries plus the rental income are insufficient to cover it.
I had, however, presumed the bank would take into account the fact we own a property outright when deciding whether we could be offered a mortgage. I did make clear that it would be temporary - that we would pay down the vast majority of it as soon as the house had sold - but it seems neither makes any difference.
Is there a financial product that will allow us to borrow the sum needed, taking our assets as collateral instead of our income when decided whether it is safe to lend us the money?