Short term, but large amount. Bridging Loan? Mortgage?

shtu

Hi folks,

First post on here, so be gentle!

The situation is that my partner and I are buying a home together, after years of having seperate homes.

My partner has sold her house, and has approx. £145k in ready cash.
Mine is not on the market, but would fetch about £160-£180k, plus I have approx £25k in savings. There is a mortgage which is about £56k (i know, I know, mistake. Was holding off until the move to sort this out...)

We are looking at a house which will need a lot of refurb, and is on the market (in Scotland) for offers over £275k, which means it's likely to sell for approx. £300k. After this, it will need fairly serious money spent to refurbish - it's really not much more than a shell just now.

So,

300k
-145k partner's cash
-20k my cash (allowing 5k for fees and duty)

= 135k short until I sell, probably take about 3 months.

So, what are my options?

My thought - bridging loan for the balance, then clear this and arrange a fresh mortgage once mine sells.

Final snag - owners have set a closing date for bids as next Tuesday, so we will probably need to arrange funding fairly sharpish...

payless

depending on incomes You may be able to obtain a normal mortgage, with option to partially redeem

herbiesjp

payless wrote:

depending on incomes You may be able to obtain a normal mortgage, with option to partially redeem

Agreed, probably the cheapest way would be to get a normal mortgage on the property to be purchased.

This will be dependant on your current circumstances i.e. incomes/debts (including existing mortgage payments)/children etc etc. as to whether you would be eligible

A good whole of market adviser should be able to help you with this scenario

HTH

shtu

We're pretty OK on the debts front - nowt bar my mortgage, which is sub-£400pm. No kids, and joint income is high enough.

It's more of a cashflow situation than anything else. The back of my fag packet says that once it's all over, the mortgage will be much the same as it is now.