financing bridging loans for build schemes - any info?

Hizz

Friend of mine was telling me a few weeks ago how he has put every penny of his savings and taken further mortgage borrowings to provide secured bridging loans to people on self build schemes as it returns an unbeatable return of 10% per month.

Is this true, if so how does it work and how safe is it?

silvercar

if its too good to be true.....

So Bob runs out of money in the middle of building, he can't pay you the interest, you can't pay your mortgage, you get repossessed. Bobs allright he's still got his house. You could repossess his half built plot if you had the money to pursue him. Then you need to sell a half built plot of land - any takers? Where are you going to park your caravan, in which your now living, when the plot of land sells for half its value?

Hizz

Fully understand the point you make.It's one amongst many that I have stewed over in my mind many times over.

One of my other concerns would be to know how many other people/organistations may have provided funding to be secured against something - and if it all went 'belly up' what's the hance of getting all of your funds back? Assume that it may be like a CVA where you may get a percentage of the pound?

I am curious though to find out more, if anybodys knows anything further.