Bridging Finance

Kavanne

koexelek wrote: »

I think she could. Some companies will " roll up" the interest, so that it is paid in one lump sum along with the capital. Therefore, no monthly payments are made.

Don't know if I'd advise it in this situation though, unless your mum is close to selling.
If the £459k house didn't sell for a while, you would be talking a lot of interest

Yeah my mum has only just put her house on the market... I told her to just slash 20-30k off her asking price and sell... that's probably how much bridgeing would cost her too with fees + interest?!

koexelek

Kavanne wrote: »

Yeah my mum has only just put her house on the market... I told her to just slash 20-30k off her asking price and sell... that's probably how much bridgeing would cost her too with fees + interest?!

On £20000 borrowing, I think you'd be looking at about £2k up front, and about £3500 per month interest.
Might be worth considering in a bouyant housing market, but a bit risky as things are now.

If she is desperate to move, she could consider raising £200k on the current house by way of a buy to let mortgage, then let it out, so that the rent covers the interest.

Someone like Bristol & West would look at that, regardless of age and personal income.
A buy to let mortgage is only as good as the potential tenant though. If there is no tenant, or the tenant does not pay you, the lender will still want their monthly payment.

Kavanne

Our house was let out before we bought it 4 yrs ago. Also there are several other houses let on our street, even big 4-5 bed ones so I imagine it might be worth considering...

HelpWhereIcan

koexelek wrote: »

Affirmative Finance
B M Samuels
Credit & Mercantile
Excel Securities
Mathon
Mayfair
Tiuta

Never dealt with any of them

Of those, I have only done a deal with Exel and Affirmative - both ok pricing and criteria wise, but have found it difficult at times to speak with someone with an underwriting mandate straight away. Every hour counts when you are trying to sort a bridge quickly so being asked to leave your number for someone to call back when someone is available is not ideal in my opinion.

C&M & Mathon were a bit off handish in my experience so never got beyond initial enquiry - but I was not looking at bridging 350K on 900k!!

Bridgebank I have only made one enquiry to and found them expensive.

My bridging cases have tended to go to Cheval or Catalyst as I found them the most knowledgable and easy to deal with.

Always there or thereabouts with pricing, but with a bridge with one week timescale you need someone who will get it done and cheapest does not always get there.

Cheval should be approx 1% - 1.5% pm with 1.5% ish fee. Legal fees a bit high. Fast and been at it a lot of years through brokers so do not mess you about.

Catalyst are not far off that but can be better with LTV (not a consideration in this one) and the one on one contact is good.

Have a long list of other bridging lenders (investors who buy at auction/to develop) if you need it, but seeing as this is fairly straightforward, I don't think you will need the list as I find Cheval & Catalyst very good and tend to look elsewhere only when I get a knock back from them and need someone who will 'take a view'.

koexelek

Thanks for that mate.

I'll add Cheval to my list to try on Monday

minimike2

Cheval.....thats the other one I was trying to remember the name of who are part of Blemain - well worth talking to.

koexelek

minimike2 wrote: »

Cheval.....thats the other one I was trying to remember the name of who are part of Blemain - well worth talking to.

I've just registered with them on line, and have requested a call back for Monday morning.

koexelek

Just spoke to Cheval. They seemed the most helpful.
Have sent the dip over, so I hope they can come up with the goods .

Once again, appreciate the tip. If you know nothing about the companies in question, it is just pot luck.

payless

If it stacks up to their tighter croteria RBoS will likely be much cheaper than these 1%+ pm dudes

koexelek

payless wrote: »

If it stacks up to their tighter croteria RBoS will likely be much cheaper than these 1%+ pm dudes

what are their timescales like though ?

I have found recently that anything RBS = very slow