Bridging advice please

webmister22

Hi,

I’m currently selling my house and the buyers pulled out a week before exchange because he was self cert and lost a big contract so couldn’t get the mortgage he was hoping for. This is the 3rd sale to fall through and I’ve already invested the best part of £1000 in a new build with deposits, surveys etc and don’t want to loose it not to mention the emotional upheaval me and my partner have experienced.

Anyways, I’ve looked in to getting a bridging loan for the £140000 I would need to keep both properties and was quoted an extortionate £1700 interest plus £2000 setup fee’s which is totally out of my reach.
A friend of mine works in finance and suggested I get an interest only loan for the bridge which is around 85% of the new property value which would cost around £650 a month and my questions are.

Can you get an interest only mortgage on a house without an investment to pay it off?
If so can I get this from alliance and leister as these are the people who have surveyed the house.

Cheers,

Webmister22

silvercar

seems an expensive bridge! I thought rates were around 1%. The danger with bridging is being sure you can afford to do so for however long it takes to sell your home.

interest only with no repayment vehicle is quite common and shouldn't cause a problem for the lender, though it will cause a problem for you if you have no exit strategy.

I would guess you could get a buy to let mortgage for 85% if the rental stacks up, though can you afford the 15% deposit?