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Loan for deposit/bridging loan?
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rdpro
Posts: 607 Forumite
My situation is this :
First-time buyer, but my brother and I have accepted an offer (cash buyer) on the house we inherited from my mother.
I have had an offer accepted on a house and have had my mortgage application accepted already.
I was hoping that the money from the house sale would come through before I was expected to pay a deposit on exchange of contracts, but it's looking pretty tight now and have no savings of my own that would cover it.
Would I need a bridging loan for the deposit, and can anyone recommend anywhere that does good rates on them? The deposit will be around 16,000 pounds.
First-time buyer, but my brother and I have accepted an offer (cash buyer) on the house we inherited from my mother.
I have had an offer accepted on a house and have had my mortgage application accepted already.
I was hoping that the money from the house sale would come through before I was expected to pay a deposit on exchange of contracts, but it's looking pretty tight now and have no savings of my own that would cover it.
Would I need a bridging loan for the deposit, and can anyone recommend anywhere that does good rates on them? The deposit will be around 16,000 pounds.
IT Field Service Engineer, 20 years with screwdriver and hammer 
0
Comments
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The danger is that the house sale falls through and you need to bridge the whole purchase: very risky.
If you are sure you only need the deposit then I would try and get a loan from your bank or ask for an overdraft facility.
40% of people who get bridging finance end up using it for longer than first envisaged. This is a high risk strategy.
I'm almost reluctant to mention bridging finance people because of the high risks involved, but if you do want a recommendation (from friends, I haven't used them personally) try https://www.cheval.co.uk.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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