Bridging Finance

emeraldbugle

Anyone know much about this? Roughly what interest rates they charge? Who offers this facility?

silvercar

Not only is it expensive (I think your talking of a set up fee plus 1% interest a month roughly), but you need to have an exit route.

Fine if you know that the money will be coming in eg you need to cover a 2 week gap between completing on your new house and your old. Dodgy if you hope to sell your home in the next few weeks and bridging will tie you over.

Richard_Webster

Not only is it expensive (I think your talking of a set up fee plus 1% interest a month roughly), but you need to have an exit route.

Fine if you know that the money will be coming in eg you need to cover a 2 week gap between completing on your new house and your old. Dodgy if you hope to sell your home in the next few weeks and bridging will tie you over.

I agree with Silvercar.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying client

i1189

We got a bridging loan through NatWest. I remember the setup fee was quite expensive £500+ if I remember rightly on £50k. The interest was quite high but was only due every 3 months as a lump sum.

We had already exchanged on both the house we were buying and the one we were selling, but there was a property developer in the chain for the house we were selling, who refused to complete for a couple of months as he was buying a bunch of houses at the same time. So although it cost a bit it wasn't for long.

However, the people selling the house we were buying had also taken a bridging loan to buy their new house, and their first buyer dropped out, and so they were stuck for over 6 months until we bought the house.