Bridging Loan Finance?

dinofabio

Hi All

I'll come straight to the point and hope someone can give me some pointers.

I own outright a property, which is sold subject to contract. Sold for £150K. I'm sitting in a chain so nothing is happening fast.

I've seen another property I would really like to buy. It's on the market for £140K.

ATM I've got £125K in the bank, so I'm £15K short (assuming it sells for £140K).

So I need relatively short term finance of £15K max to help me buy this place pending the sale of my own property. As soon as my sale goes through I'll obviously be able to repay the £15K in full.

To complicate things, I'm newly self employed.

Can I get a short term loan using my existing house as security?

High street banks or building societies or broker?



Never tried to arrange anything like this before so have no idea of where to go.

ACG

Id be pretty confident of placing this. Probably wont be the cheapest taking into account the newly self employed bit but i would say due to the low loan to value this will be possible.

dinofabio

ACG wrote: »

Id be pretty confident of placing this. Probably wont be the cheapest taking into account the newly self employed bit but i would say due to the low loan to value this will be possible.

Thanks.

Will a high street bank touch it or will I need a broker?

ACG

I dont think any high street banks do bridging loans to be honest.

I think you probably will need a broker for this to be honest... if anything though thats a good thing, as they can search plenty of providers to make sure you are getting a decent deal and not just the first one you find.

pawpurrs

At that sort of level, a loan may be a better option?

hazyjo

dinofabio wrote: »

I own outright a property, which is sold subject to contract. Sold for £150K. I'm sitting in a chain so nothing is happening fast.

Only thing I'd be worried about is what if the chain collapses? Something like 1 in 3 still do! I've lost several houses over the years, and friends and colleagues have lost houses the day before exchange even.

Not sure I'd want a bridging loan... would stick to a personal loan, presuming you can pay it off early with no penalty, and presuming you can afford it if the sale falls through and you're in another chain (or the same one) in say six months' time.

Jx

kingstreet

I'm a bit puzzled, if you are SSTC, why not simply offer on the new one and have the two transactions work through at the same time?

The bridging finance would only be a last resort if a problem developed with your sale.

Do you need to complete the purchase before the sale, for some reason?

Dan-Dan

dinofabio wrote: »

I'm sitting in a chain so nothing is happening fast.

Sounds like thats your fault to be honest!

hazyjo

kingstreet wrote: »

I'm a bit puzzled, if you are SSTC, why not simply offer on the new one and have the two transactions work through at the same time?

The bridging finance would only be a last resort if a problem developed with your sale.

Do you need to complete the purchase before the sale, for some reason?

Good point - it'll probably take around 12 weeks for the purchase to go through anyway! So go live in a hotel room for however long or stay with friends/family...

You won't be able to just walk into an EA's and buy this other house with cash. These things take time (as you know!).

Jx

kingstreet

dinofabio wrote: »

I'm sitting in a chain so nothing is happening fast

Is everyone else waiting for you to find a property?

Dan-Dan

thats what i thought , no wonder nothings happening!