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Bridging Loans
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WRW
Posts: 5 Forumite
A bridging loan is a short term loan to cover buying one house before the sale of the other one is completed. I couldn't find any Forum items on this. 
There seem to be plenty of rip-offs but not I've found any good value. Here's what I know:
Open bridge- when you need to pay for the new house but have not yet got a signed deal for sale of your present house - this kind of loan is going to be expensive.
Closed bridge - when you do have a sale agreed but your purchase date is earlier than the sale date. These used to be simple to fix up and cost about 2.5% above bank base rate. Nowadays there seems to be always an "arrangement fee" which is at least £500 (that was HBOS). Many Banks want a lot more. For what????:rolleyes:
The best deal I have found - to be confirmed- is to have my lawyer arrange it, for £300 and 2.5% over base. Anyone know a better way? (PS the amounts are far too high for using those cheap personal loans of up to £25K unless I took about 8 of them out simultaneously.)
There seem to be plenty of rip-offs but not I've found any good value. Here's what I know:Open bridge- when you need to pay for the new house but have not yet got a signed deal for sale of your present house - this kind of loan is going to be expensive.
Closed bridge - when you do have a sale agreed but your purchase date is earlier than the sale date. These used to be simple to fix up and cost about 2.5% above bank base rate. Nowadays there seems to be always an "arrangement fee" which is at least £500 (that was HBOS). Many Banks want a lot more. For what????:rolleyes:
The best deal I have found - to be confirmed- is to have my lawyer arrange it, for £300 and 2.5% over base. Anyone know a better way? (PS the amounts are far too high for using those cheap personal loans of up to £25K unless I took about 8 of them out simultaneously.)
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