Briding Loans?

rdunn

Hi all,

I’m looking for some advice on bridging loans and wondered whether anyone here could shed some light.

In short, a friend of a friend is experiencing some debt problems and looking to sell their home fast, they’ve indicated that they’re willing to accept £200,000 and move to rented accommodation, whereas I believe that the home is worth around £290,000.

I don’t have any cash to get a regular mortgage, but from what I can see some bridging lenders are willing to loan the money based on the value of the home (there would still be over 25% value in the home with a £200,000 purchase price) rather than the actual purchase price. If they were to lend the money then I believe I could easily resell in 6 months – it’s a nice property in a desirable area, meaning that even with the bridging interest rate there would be money in it for me.

I have a few questions and hope you guys can advise before I take the plunge on a disastrous deal:

1. Do you think this is all a bad idea which could land me in crap?
2. Does anyone know how hard it is to get a bridging loan? Would they even accept a scenario such as the above?
3. Does anyone see this as morally wrong? I don’t want to screw them out of income, but they’re offering it and if I don’t do it then I’m sure someone else will get a great deal instead.

I’d appreciate any help you guys can offer, I want to make sure I’m not making a bad choice!

Thank you,
Robert

dimbo61

1 Bad idea
2 NO you need a deposit and you will not get a mortgage without one
3 This needs to be saved money and not a LOAN!!!
4 Getting a house on the cheap because your friend is in deep DO DO no problem
All you need is the money for a deposit say £20K and money for fees say £5K and a lender to give you a mortgage of £180K
Hope you have an income of £45K a year ???

rdunn

Hi Dimbo61, thanks for the response.

But am I right in saying it can take weeks or sometimes months to get the mortgage completed?

That's why I thought a bridging loan rather than a mortgage, just as a short term solution, could be a good idea.

I could be being narrow minded here, but it seems there is money to be made providing I ensure that the property is in good condition (professionally) and have it valued independently.

Any other advice is much appreciated.

Let_Us_See

Stupid idea for many reasons for a fast buck.

Do you have the cash to meet bridging loan payments of approx 1% per month?