We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
New mortgage, bridging loan or...?
JenniferC_2
Posts: 3 Newbie
Hello all
Many thanks in advance for your thoughts on my dilemma - and I also realise that I'm lucky to be in this situation, as you'll soon realise.
My 1-bed flat in a trendy part of london has just gone onto the market at £240k. I have an interest-only mortgage of £143000 on this and outstanding debts (all at best moneysaving rates of course!) of £10k. I have recently gone from being self employed, with all the associated vagaries of income, to having a salaried, permanent job at £54k.
I am planning to move in with my boyfriend, to his flat. At the moment, he has a 40% share in a shared ownership flat and we are planning to buy the rest. However, as I am going to make a significant profit on my flat, we are also interested in buying a second home by the sea. We have had an offer of £155k accepted on a lovely home where we plan to work at least part of the week.
The problem is that the vendor of this flat is rather elderly and although we have offered £6.5k more than the next bidders, she is panicked that we are in a chain situation (ie selling my flat) and has given us a limited time to have secured an offer on my flat. However, I don't want to risk losing this property and I am aware that even getting an offer on my flat is no guarantee that a sale will go through.
I was planning to transfer my mortgage from my London flat to the new house. Although there would be the survey fee (£300) and a penalty for changing to a smaller mortage (£1300) this is less than the £5k penalty for early repayment. Also, at a rate of 4.29%, it's a good deal. The repayment period is until Oct of this year.
However, as there are no guarantees that I will sell my flat straight away, I want to find out about getting a bridging loan or getting a second mortgage arranged in principle, just so that there are alternative means to finance the house purchase even if it takes a while for my flat to sell. Basically, I don't want the seller to take the lower, but on-the-table offer!
Disadvantages of getting second mortgage - will only be able to raise small deposit, will have to then pay repayment penalty on current mortgage, will have less good credit due to debts than otherwise would...
however, I don't really know how a bridging loan works?
Any thoughts or comments or advice gratefully recieved.
Many thanks in advance for your thoughts on my dilemma - and I also realise that I'm lucky to be in this situation, as you'll soon realise.
My 1-bed flat in a trendy part of london has just gone onto the market at £240k. I have an interest-only mortgage of £143000 on this and outstanding debts (all at best moneysaving rates of course!) of £10k. I have recently gone from being self employed, with all the associated vagaries of income, to having a salaried, permanent job at £54k.
I am planning to move in with my boyfriend, to his flat. At the moment, he has a 40% share in a shared ownership flat and we are planning to buy the rest. However, as I am going to make a significant profit on my flat, we are also interested in buying a second home by the sea. We have had an offer of £155k accepted on a lovely home where we plan to work at least part of the week.
The problem is that the vendor of this flat is rather elderly and although we have offered £6.5k more than the next bidders, she is panicked that we are in a chain situation (ie selling my flat) and has given us a limited time to have secured an offer on my flat. However, I don't want to risk losing this property and I am aware that even getting an offer on my flat is no guarantee that a sale will go through.
I was planning to transfer my mortgage from my London flat to the new house. Although there would be the survey fee (£300) and a penalty for changing to a smaller mortage (£1300) this is less than the £5k penalty for early repayment. Also, at a rate of 4.29%, it's a good deal. The repayment period is until Oct of this year.
However, as there are no guarantees that I will sell my flat straight away, I want to find out about getting a bridging loan or getting a second mortgage arranged in principle, just so that there are alternative means to finance the house purchase even if it takes a while for my flat to sell. Basically, I don't want the seller to take the lower, but on-the-table offer!
Disadvantages of getting second mortgage - will only be able to raise small deposit, will have to then pay repayment penalty on current mortgage, will have less good credit due to debts than otherwise would...
however, I don't really know how a bridging loan works?
Any thoughts or comments or advice gratefully recieved.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards