Bridging Loan Alternative - Help Please!

mrspoons1

I've bought a property at auction which does not have a working kitchen and is not therefore mortgageable. It is structurally sound and everything else is in place, and I have been advised that the only thing preventing me from taking a mortgage out on the property is the lack of a kitchen. Once one is in place, even a cheap temporary b&q hob and sink, a mortgage should be approved.

I understand it used to be the case that you could obtain a bridging loan, install the required item eg the kitchen, get the place surveyed, and pay off the bridging loan in a matter of weeks with the new mortgage, but rules have now changed and you have to have the bridging loan for a minimum of six months.

Since I require less than 50K to complete the purchase, is there a cheaper way of acquiring the money at a better rate than 18% for 6 months or whatever?

I should add that i intend to live in the property ultimately and rent out my first mortgaged property at the moment. My dad has offered to help by me getting a mortgage of his place and then using the capital to buy this one, until i can get a mortgage on this one and repay him, but i was wondering if there is a better way to raise the money initially. I only have 3 weeks or risk losing my deposit, stupidly.

thanks if anyone knows a way round this 'habitable kitchen' hurdle.

gazfocus

Did you not consider this before you bought the property? I would be concerned that your dad remortgaging might take more than the 3 weeks you have but I could be wrong.

mrspoons1

I did consider it but the previous property (also from auction) only required a temporary bridging loan. I should have checked the current rules though, 6 months at 18% is a lot more than for just a couple of weeks. Can anyone help?

Dave_Ham

The cheapest way will be Dad doing a remortgage or borrowing from friend or family in another fashion..

Alternatively, you can potentially get around the 6 months ruling so long as you are not trying to refinance at a higher price than paid..

Good broker will know the right calls to make or get Dads through on the pronto...

DVardysShadow

Spammer wrote: »

Hi,

We should be able to assist you in your quest for funding this project. Drop us a line either via the forum or our website through the instant chat support system.

Kind regards,

James

Spam not welcome here. Goodbye.