Do bridging loans still exist?

shelly

Hi all. I am hoping that someone way more knowledgeable than me can help.

Hubby and I have found a house that we are very interested in making an offer on. We spoke to the vendor about what she would maybe be willing to accept and she told us that someone else has made an offer of the full asking price. The offer hasn't been accepted or declined as its based on the other people selling their house to raise the cash, also they know she hasn't taken it off the market and if someone comes along she will sell to them.
What we need to know is, does a mortgage exist where we can get the full asking price amount then when our house is sold we would immediately pay off about half? If so what criteria do they expect? i.e salary multiple. Do they set a time limit for selling house we currently have?
Hubby has been offered about 3/4 of the asking price so we want to raise the final 1/4 and wondered if theres any way to do so.
The amount we want is roughly double what our house we have to sell is worth

GabbaGabbaHey

shelly wrote:

What we need to know is, does a mortgage exist where we can get the full asking price amount then when our house is sold we would immediately pay off about half?

Bridging Loans do exist, though you will pay a much higher rate of interest than you would do on a normal mortgage.

I am not one of the doomsayers who thinks that a housing market crash is imminent. However, you really do need to be aware of the risk you are taking, should the housing market fall in price. I saw this happen to a friend of mine at the time of the last (laste 80's) crash. He bought a house, using a bridging loan, before he had sold his flat. Then the market dropped. He is still not back on an even financial keel, and has gone through many years of significant financial hardship.

shelly wrote:

When talking about e-bay you have BID on an item, not BIDDED

When talking about eBay, you should not call it e-bay :-)

shelly

GabbaGabbaHey wrote:

When talking about eBay, you should not call it e-bay :-)

:rotfl: I'll change it right away

silvercar

without having sold yours, the risk is that you could be carrying two properties for a long time. Is this house so unusual that you need to grab it now rather than wait and risk going for a different house.

If you must buy this now one option would be to rent your out with a BTL mortgage to release funds for your purchase.

shelly

silvercar wrote:

without having sold yours, the risk is that you could be carrying two properties for a long time. Is this house so unusual that you need to grab it now rather than wait and risk going for a different house.

If you must buy this now one option would be to rent your out with a BTL mortgage to release funds for your purchase.

We understand the risk that we may have 2 properties for a long time but juding by the way properties are selling in our area at the moment.....and in worse condition than ours.....we are confident that ours won't be on the market for very long, but we do understand the risk.

Its not an unusual house as such but it does tick almost every box. Also if we believe the vendor that they have an offer on the table we don't want to miss getting our offer on the table too. We have been looking on and off since August and this house is the best so far.

Ian_W

I'd agree with the comments above about the risk of "bridging" but more in the way of info than opinion LTSB have details on their website at:
https://www.lloydstsb.com/rates_and_charges/loans_rates_curr_page.asp#bridging%20loan

Lloyds seem quite reasonable [in terms of bridging loans] in the interest rates they charge but quite steep on the arrangement fees. I've certainly checked other banks sites [RBS or BOS, I can't remember which] and their rates were higher but arrangement fees were lower.

THE_LONE_RANGER_4

dont even go there cost you a fortune and if anything goes wrong ie jobs you will wish you hadnt gone there believe me