Bridging loan
Author
Discussion

WarwickGriff

Original Poster:

356 posts

254 months

Wednesday 17th July 2013
quotequote all
Do these still exist any more? just though I'd ask before phoning up the bank phone

Mrs Griff has found our dream family home to buy, however, the seller is refusing our offer because the length of our chain is 5 people! and this could mean potential for delays and hassle for them.... so I'm investigating all options available.

The new property is c.£500k so I'd need a load for that and our deposit once our place is sold 60% of that

Sarnie

8,373 posts

239 months

Wednesday 17th July 2013
quotequote all
Yes they exist, not sure if any high street banks do them though.............

WarwickGriff

Original Poster:

356 posts

254 months

Wednesday 17th July 2013
quotequote all
Sarnie said:
Yes they exist, not sure if any high street banks do them though.............
I thought you'd be along shortly Sarnie wink any pointers in terms of lenders? or if its something you could help out with I'll pm you

WarwickGriff

Original Poster:

356 posts

254 months

Wednesday 17th July 2013
quotequote all
[redacted]

Sarnie

8,373 posts

239 months

Wednesday 17th July 2013
quotequote all
WarwickGriff said:
Cheers Tonker so how would that work with these example figures? Current house sale £330k with existing mortgage of £80k, so £250k deposit for the new place at £500k, enough spare cash to cover buying/selling/stamp duty etc.
As Tonker has laid out, this is entirely feasible for you to do without the need of an extortionately expensive Bridging loan meaning you can essentially make your offer on the basis of you being 'chain free'.

Product selection will be key as you won't want any ERC's on your BTL property once you've sold it etc.

Drop me a PM if you need some help smile

Kudos

2,674 posts

204 months

Wednesday 17th July 2013
quotequote all
Any issue with the 6 month remortgage/new mortgage issue for buyer?

Sarnie

8,373 posts

239 months

Wednesday 17th July 2013
quotequote all
Kudos said:
Any issue with the 6 month remortgage/new mortgage issue for buyer?
Why would there be?

LC926

891 posts

202 months

Wednesday 17th July 2013
quotequote all
We just looked into this, horrendously expensive, not so much the monthly cost but the set up fees.
For example, I need to borrow £310,000
The way they priced it, was:
£310,000
+ Pay off existing mortgage £ ?
+46,000 so I can pay the payments for 12 months
+ add the fees to the loan

It worked out they were wanting to lend me about £150,000 more than I wanted.
The monthly cost was about £4000, which is about where I thought (0.95%)
but the fees were about:
£8000 set up
£1000 legal
£750 valuations

Honestly it went on.

It worked out if I only wanted it for a month, it would cost me £14000

The truth is I might not need it, but need the promise of it so I can exchange while the others catch up
So if anyone out there needs very short term investment, pm me !!