Is A Bridging Loan The Right Answer?

savemesomedollar

Hi,

I'm looking to purchase another property to do up and sell as quick as possible, would I be better off getting a Bridging Loan? cAN ANYONE RECOMMEND ANY GOOD COMPANIES.
mANY THANKS

Snaggles

Bridging finance tends to be extremely expensive and in general, mortgage borrowing is much cheaper to set up, and the interest rate is lower. Bridging finance also often takes just as long to set up as a mortgage, as it is still secured borrowing. Have you looked at the possibility of just taking a mortgage on the new property (to run alongside the mortgage on your own property, if you have one)? One problem you might come up against is lenders not wanting to do a mortgage for a short term - however, providing you have checked there are no tie-in periods or early repayment fees, they do not necessarily need to know that you are intending to pay it off after a few months! Difficult to make any suggestions without asking you loads of other questions, but if you want me to have a look over your circumstances, just add another message with a few more details - ie property value and mortgage outstanding on your home property, purchase price on new property, how much are you able to put down yourself for the new property, income level & outgoings. I assess non-standard lending (bridging finance etc) for a living so might be able to help.

blonker

Hi
Is a loan, (for a self build) 3% over Bank Base, arranggement fee 1%, interest only basis & interest is charged according to the outstanding daily balance of the loan account. Interest debited monthly from current account.
A good deal