Bridging loan. Help.

speccyget

Help needed please? I am in the process of buying a new build Wimpey house. They have told me that I have to complete by the 30th June, and that is not negotiable. However I have just realised that (a massive oversight by me) my deposit money is tied up in a fixed rate bond account until the 17th July (I thought it was June). I am currently living in rented acommodation so, as I understand it, I can't get a bridging loan. I will phone the fixed rate bond bank tomorrow and state my case but I dont hold out much hope.
On the plus side, I haven't exchanged contracts yet so if I have to withdraw I will only lose my reservation fee. But we want this house. Can anyone please advise on what options are available to me? Many thanks

poppy10_2

How much is the reservation fee?

In the current climate it is unlikely that they have buyers queuing up to buy the house you want. Time is on your side.

speccyget

poppy10 wrote: »

How much is the reservation fee?

£1000. All they are concerned about is their half year results.

poppy10_2

Let them be concerned.

Once you take into account the costs of breaking your fixed rate bond and loss of interest, plus the setup fees and interest charged on a bridging loan, the £1000 will look cheap.
Plus if you wait another month, with prices falling on average by £2000 a month, you might be able to negotiate a better deal with Wimpey. Ignore their posturing and look after your own interests.

Dan_1976

Tell them to stick it.

A bridge will cost a huge amount and you need cash to put down. 20-40% I imagine now. Rates will be 3 times that of a standard mortgage.

I know its hard as you want the property but they will not find a buyer in time for that date if you blag it on a bit!

Dan_1976

Ps. Try and look in to the reservation fee, I am sure they cant make it non refundable.