Bridging loan alternatives

thisarch16

Hi, I am a newbie looking for advice.
My OH and I have sold our house STC to FTBs. We have found a property to move into, with no forward chain, had an offer accepted, and everything is going through. The only slight fly in the ointment is that we are tied into a fixed mortgage deal in our current home which expires in approx 3 months. Our buyers are happy to wait to complete on our sale until the day following our deal expiry, but our vendors want to move on asap.
We are looking at raising our deposit for the new property (£30,000) through closed bridging finance following exchange of contracts, obviously then clearing this loan on the day of completion of our sale.
We have looked at the cost of a bridging loan, and we reckon that by the time we have paid an arrangement fee, interest and related legal costs it is going to cost us around £1000. We recognise that in the 'big picture' this is not a lot to secure a new home that we intend to stay in for many years, but we want to explore all other options, if any exist, before committing. If push comes to shove then we will go down this route; we are using an excellent whole of market broker who can arrange everything as cheaply as possible, so have no fundamental worries about the process going ahead, but clearly want to do it as cheaply as possible!
My OH has banked with Barclays for many years, runs his account well, salary (circa £40k gross annual) paid in monthly, regular outgoings etc, and we both have a high credit rating. Is it worth going to them and asking for a short term unsecured loan, or even a temporary overdraft extension, as we will have evidence that this can be paid off on a particular date. Or do banks simply not work like this any more?
Any thoughts/suggestions welcome.
Thank you.

gb12345

thisarch16 wrote: »

Hi, I am a newbie looking for advice.
My OH and I have sold our house STC to FTBs. We have found a property to move into, with no forward chain, had an offer accepted, and everything is going through. The only slight fly in the ointment is that we are tied into a fixed mortgage deal in our current home which expires in approx 3 months. Our buyers are happy to wait to complete on our sale until the day following our deal expiry, but our vendors want to move on asap.
We are looking at raising our deposit for the new property (£30,000) through closed bridging finance following exchange of contracts, obviously then clearing this loan on the day of completion of our sale.
We have looked at the cost of a bridging loan, and we reckon that by the time we have paid an arrangement fee, interest and related legal costs it is going to cost us around £1000. We recognise that in the 'big picture' this is not a lot to secure a new home that we intend to stay in for many years, but we want to explore all other options, if any exist, before committing. If push comes to shove then we will go down this route; we are using an excellent whole of market broker who can arrange everything as cheaply as possible, so have no fundamental worries about the process going ahead, but clearly want to do it as cheaply as possible!
My OH has banked with Barclays for many years, runs his account well, salary (circa £40k gross annual) paid in monthly, regular outgoings etc, and we both have a high credit rating. Is it worth going to them and asking for a short term unsecured loan, or even a temporary overdraft extension, as we will have evidence that this can be paid off on a particular date. Or do banks simply not work like this any more?
Any thoughts/suggestions welcome.
Thank you.

Your OH will not get an unsecured loan for what amounts to 75% of his gross salary.

You say you are tied in to your fixed term mortgage for another 3 months. How much is the penalty for early repayment and what is the difference in interest payments between your current mortgage and the new one for those three months?