Bridging Loans

homeowner67

selling my property, mum is selling hers, buying another property jointly. Mine sold stc mums sold stc but hers having repairs done before new buyers get a mortgage on it. mine 97, 000 mums 157, 000
new house 146,000. looks like my sale will go through quicker than mums. wondering about getting bridging loan for about 45,000 so we can still buy new house if mums sale takes longer. would it have to be in my mums name as its her house it would be guaranteed on? is it even worth getting bridging loan. i don't want to hold up purchase of new house as it is our ideal home!
neither me or mum need a mortgage as we own our homes outright

poppasmurf_bewdley

From what you have said, it sounds as though you should have no problem getting a bridging loan. Only you can tell if it's worth getting one.

Try your own bank first. I'm assuming you do not have an adverse credit record.

chesky

Have you found out exactly what it will cost?

eddddy

Hi Homeowner

Without wanting to sound to downbeat, the worst case scenario would be that you take on the bridging loan and buy the new house, then your mother's buyer 'changes their mind' - which they are free to do without penalty until exchange of contracts.

You then have to service the £45k bridging loan until your mother can find another buyer... (and again worst case scenario is that property prices drop, your mother has to drop the price... it takes months to sell etc...)

Maybe try to evaluate the risk of this happening and calculate the cost of an extra 6 or 9 months of bridging loan, to see if you're happy with the risk.

eddddy