Bridging Loan - Scotland.

nikkiandmidgets

We currently have a mortgage with the Abbey for our current mortgage and property is going to a closing date next friday. We have a property we are purchasing that we have to tie up the deal today and are trying to estimate entry dates based on when my husband will be home (He works away a lot etc. I am guessing that we are wanting to move into the new property at start\middle of June but that some of the prospective buyers on our property may not want to tie up the deal on our current property till July. The current mortgage is in both our names (£106,000 outstanding), the new mortgage is in my husbands name only (£298000 purchase price, with £230,000 mortgage - all deposit and solicitors fees coming from equity from our current house).

Anyone offer any advice on a bridging loan? We have had to take a mortgage from Birmingham midshires cos my husbands (And probably my) credit history got a bit colourful when we nearly divorced 16 months ago and his solicitor advised him to freeze the joint acct. The stupid !!!!!! cancelled any direct debits that were not in his name or ones he didnt recognise so he has some defaults he has to pay off. Anyway we are going to start clearing them up now - I have just applied for credit references to see what the issues are so thats more of a side issue. Anyway our current mortgage is with Abbey - can anyone offer advice on where to apply for a bridging loan - i gather we apply for the full £298000 or do we take into account the collateral on our current property? Cant seem to find any articles on how best to handle all this and husband is not due home till start of May!

Oh yeah as its scottish law I am still entitled to half of the marital property and our plan is to clear up our credit and then we can look at using my salary to invest in property, either rental or new builds(Think they are classed as off plan?).

Thanks for any info.....

silvercar

Anyone offer any advice on a bridging loan?

Bridging loans are very expensive. If you are not 100% confident of tying up your sale, it is going to be very risky. Costs are generally an arrangement fee and 1% of the loan value. You would need to borrow the full purchase price if you haven't sold your current home.

I don't quite see why the new house is going to be in your husband's name if he is the one with the debt problems etc. You may find a broker could help you get a better deal.

Oh yeah as its scottish law I am still entitled to half of the marital property

May be at the moment, but who knows in the future? If you are still considering a break-up is it sensible to be buying an expensive property?

nikkiandmidgets

I have checked with my solicitor and she says there is no risk to me. We have to have a bigger house, I am back at work full time and my mum has moved in with us to look after the kids when I am at work. Our current house is a 3 bedroom bungalow but third bedroom is tiny and walls are not solid so if in small bedroom you can hear dishwasher getting unpacked in kitchen!

I am temporarily employed and my credit got screwed when his did because I only had Government maternity pay to live on, and that took a while to organise cos I had a 10 month old, a new born baby and my husbands affair to cope with so my head wasnt exactly screwed on then. He still had his wages every month but was listening too much to colleague and associates who were divorced so was trying to protect his funds. he had been in Asia for 6 months and was having trouble adjusting to life with kids. no excuse but I think its easier for women to adjust to the massive change in life children bring with them, and with him working 250-320 days away and not wanting to change career because he likes to travel (Wanderlust hasnt left him yet, hopefully once kids are older..!), its harder for him to grow up and face his responsibilities properly. he is trying though and for the sake of him and the kids and their future relationship I want to give him the chance. Marriages have their ups and downs and ours is struggling to recover from what for me was a VERY hard knock.

My solicitor doesnt anticipate our house sale wont happen - we have a verbal offer in for £207500, 3 noted interests in and all in the last 10 days. the housing market is very buoyant in the Aberdeen area and its a sellers market just now with houses selling at least 20% over valuation closr to the city - we are just on the edge of the area but should get 10-15% over valuation.

Plus my mum is going to have some money in about 2 months and wants to invest so she can get enough money to buy her own place to move into once we no longer need her full time. I will be looking into investing with her and we will get a doc written up to cover my mums share in the event that my marriage falls through. I hope not as my husband doesnt want us to split and wants a chance to make amends and get to know me and the kids.

Think thats answered most but please ask if any further queries and I will hopefully answer them.

silvercar

I would ask your new lender if they would temporarily advance you all the funds to make the purchase happen. If they say no, then ask your bank if they could help. Failing that you would need to look at specialist bridging loan lenders.