Short-term auction bridging finance

laturb

Has anyone had experience of using a bridging loan (or similar) to finance a property purchase at auction?
Background: I'm restoring a property, bought for cash, but have seen another purchase opportunity (c.225k), coming up later this month.
As the existing house will not be ready for marketing until early April, I need short-term finance to be able to buy the next investment. By May/June I should be able to cover most, if not all the loan with funds from the sale.
Tks.

hazyjo

How are you so sure you'll sell the current property? Do you have a guaranteed buyer? Seeing as the average sale takes three months, and it could take a number of months to even get a buyer, I would certainly not be considering a bridging loan!

Jx

Yorkie1

I agree ^^

toylaw2

Does anyone have more advice on the above question as I am in search for a solution to a similar scenario.

Thans

chappers

Their is some short term finance out there, only problem is it isn't particularly cheap. expect to be paying 1.5%+pm plus fees and legals
They would want to know that the equity was there in one or other or both of the properties in that situation would probably want to put a charge on both properties, they may also do something with rolled up interest but that would probably cost on top again. They don't charge anything for early repayment but do charge a decent fee for over-runs/re-negotiations on top of the interest rate.
I have used Portman Finance in the past they are essentially a group of private lenders with a fairly innovative outlook(they have even funded films). Try speaking to Stewart Barnes a good guy who will at least give your proposal some consideration.
Sorry only just realised the OP put this up in March, maybe of some use to you Toylaw

toylaw2

Thanks Chappers

theGrinch

have a watertight exit route or two and even then factor in a 6 to 12-month reserve just in case.