Bridging Loan

jetsetwilly_2

Thanks to the Pre-Budget speech, I am now racing to try and complete before Dec 18th.

Given that the place I am buying is ready to go, the hold up is the person buying mine. All paperwork done, just waiting for mortgage to be approved.

Is a bridging loan an option to beat the stamp duty? If so, anyone know how to go about getting a good rate? One with daily interest if possible

Or should BL be avoided like the plague?

morg_monster

The most you are going to lose in stamp duty if you don't complete before Jan 1st is £1750. I would have thought that a Bridging loan would cost at least this much, even for a short time. Doing a quick google I see things saying the minimum rate is 1% a month; and presumably there is an arrangement fee as well? So even if you only use the loan for a couple of weeks, you're probably only "up" by a matter of hundreds of pounds. plus if you haven't exchanged yet I think rates will be higher.

Would think that a "normal" short term loan for the £1750 would be a better idea, or put it on a credit card...

jetsetwilly_2

Thanks.

Stamp Duty is £1400. Just really want to avoid paying it as I didn't budget for it, and this should all have been finished by now.

In terms of exchange/completion, what is the difference, and is there a long gap inbetween?