bridging loan or not?????

markchar

I am asking a question regarding bridging loans or other method of loan. We are selling our house but have already found the house we want in a fast selling area of our town. Our offer will not be accepted until we have sold. We need to get our hands on 200 thousand short term at the minimum cost. What advice can anybody tell me or give me about raising this capital to proceed with buying the second house whilst we sell the first. Thank you

Doozergirl

You need to have the income in place to cover the cost of the loan plus your existing mortgage unless you have enough equity in your current home to cover teh new house. I don't know anything about regular bridging loans - when we bridge we do it only to get auction properties or to put us in the best position on sealed bids. We have an agreed overdraft with our bank, secured against a house with no mortgage. We then remortgage the new house straight away.

Bridging is very expensive and £200,000 is a lot of money and a major risk when you have no guarantee on when your house will sell or for how much.
I know you won't believe me, but there really will be another house along that won't be as much of a risk when you are in a better position to proceed. I promise Maybe this house will still be around when you get your offer.

Puch all your efforts into getting your house sold quickly. What could you do with the money you'd be spending on the loan? Drop your asking price? Makle some improvements?

It's free to have the clear out that you will need to do before you move right now. It will make a difference to the way any house is presented