Bridging Loan of 150k-ish

[Hereward]

Why is house-moving so painful?!

We are just about ready to exchange on the house we want to buy but are still weeks/months away from exchange on the sale of our current house due to two buyers changing their minds. We have recently gone under offer for the third time, so fingers crossed.

I just want to move to the new house, can't face any more delay.

I can't see much on Google about bridging loan costs. Anyone know typical interest rates on £150k for up to 6 months? Cheers.

[scotal]

Dtsarts at 0.75%, goes up to around 1.5% per month.

Fees are equally horrendous, and you can have problems if you wish to move into your hosue straight away (regualted vs unregulated bridging.)

[SJobson]

Bridging is only sensible if you have exchanged on the sale but the completion date is later than your purchase. Open-ended will make you desperate; what happens if this new buyer plays silly buggers/comes in with a price chip at exchange/pulls out and leaves you trying to sell an empty house?

[Hereward]

scotal said:

...and you can have problems if you wish to move into your house straight away...

Thanks, guys. Scotal, can you expand on the above bit, please?

[scotal]

Hereward said:

scotal said:

...and you can have problems if you wish to move into your house straight away...

Thanks, guys. Scotal, can you expand on the above bit, please?

not all briding firms will allow you to occupy the house you have the finance on, its all to do with whether the loan would be regualted or unregulated. (and bridging firms dont really like regulation)
So you might have to secure the bridging on the old house.

[skeeterm5]

In the current market a bridging loan seems a crazy risk to take...... you could really end up in dire straights. Ask yourself what happens if this new offer doesnt proceed, can you afford to service both loans and live for an extended period.

One other point, the buyers of your existing house will know you have a bridge and, if it were me I would drop my offer on your place as I now assume you will be desparate to sell..

S

[Hereward]

Cheers, guys. We can afford the two mortgages and the bridging loan for at least 12 months so that's not an immediate concern, however the point about such a position being exploited by my buyer is a good one. It's just frustrating that I can't release the full equity in my current house until it's sold. Patience, patience...

[Ungarsee]

Cheapest from experience is RBS Private Banking. I used to work there as a Relationship Manager and would normally charge around 3% to 5% over Base (per annum NOT per month) and a 1% to 2% set up fee. Normally renewable on a 6 monthly basis where the fee would be payable again so can get expensive if held for a long time.

Although RBS are going through tough times they are still lending, I passed a Self build lend to an old colleague last week that my current employer (a non bailed out bank) would not touch and they were more than happy to take it forward.

PM me if you want me to pass on your details to one of the guys I used to work with (very experienced and will not mess you around).

[Hereward]

Ungarsee said:

Cheapest from experience is RBS Private Banking. I used to work there as a Relationship Manager and would normally charge around 3% to 5% over Base (per annum NOT per month) and a 1% to 2% set up fee. Normally renewable on a 6 monthly basis where the fee would be payable again so can get expensive if held for a long time.

Although RBS are going through tough times they are still lending, I passed a Self build lend to an old colleague last week that my current employer (a non bailed out bank) would not touch and they were more than happy to take it forward.

PM me if you want me to pass on your details to one of the guys I used to work with (very experienced and will not mess you around).

Thanks for that, appreciate it. Wife and I have private banking with Natwest (RBS) and they have just lent us a million quid so I was thinking of calling them first. Anyway, I'll see what September brings with regard to our house sale before going down this route.

[Ungarsee]

I'm guessing you'll be with 'proper' Private then rather than just the upgraded Premier banking. I'm sure they'll be able to help and can rarely be undercut price wise BUT they will take longer than the more expensive companies to set up so factor that in to your planning

[anonymous-user]

Ungarsee said:

Cheapest from experience is RBS Private Banking. I used to work there as a Relationship Manager and would normally charge around 3% to 5% over Base (per annum NOT per month) and a 1% to 2% set up fee. Normally renewable on a 6 monthly basis where the fee would be payable again so can get expensive if held for a long time.

Although RBS are going through tough times they are still lending, I passed a Self build lend to an old colleague last week that my current employer (a non bailed out bank) would not touch and they were more than happy to take it forward.

PM me if you want me to pass on your details to one of the guys I used to work with (very experienced and will not mess you around).

I would second rbs/nw on price and if you borrow from them Already they should be your first port of call, at least to run the the te details to see what your proposing is viable.

There is no reason for the buyer or your existing place to know you have a bridging loan at all.

Ungarsee - o/t and pm me if you would rather, but what made you leave rbs? Where are you know?