Bridging loan potentially needed....help.

funstie

OK, so I am a complete newbie when it comes to this sort of thing. We have bought a new flat with a move in date at the middle of December and the people who have bought our flat want in in the middle of January. No one is willing to budge....hence the need for some sort of bridging loan. Now this thing just fills me with dread when I read about HUGE fees. Now I don't even know the first thing about setting one of these up (for exampe....who does them? My bank? Our mortgage provider?). Any help would be appreciated just to point me in the right direction. Many thanks.

alexei_2

I don't think you'll have a problem getting one. I'm sure most lenders are in the market.

The problem comes if your house sale falls through and you are left with a mortgage and bridging loan indefinitely.

I can put you in touch with an IFA who I am sure can help you - send me a PM if you are interested in talking to him!

payless

So long as you exchange contracts on both purchase and sale at same time ( even though different completion dates) you should be able to limit your risk to a closed bridge

In most cases though the solicitors will bang a few heads together to avoid the need for this situation.

Care - if bridging make sure the new lender knows and agrees ( as likely against terms of offer)