Finance needed for house purchase

Thesnowman_2

Hi

We own 2 properties outright (let's say A and . A is let out and B is our current home. We have just gone under offer on B and have found a house that we would like to make an offer on (property C). Being skeptical as we've been let down previously by a buyer pulling out just before exchange we were wondering what options could be available to us (ie how we'd raise finance) should the same thing happen again and to not avoid missing out on buying property C.

Please advise.

Thanks.

ACG

You could apply for a mortgage or a bridging loan.

If you go for a mortgage, its probably worth finding one with no early repayment charges if your intention would be to pay it off when B sold.
If you have a bridging loan its quicker to arrange but would likely cost more.

Thesnowman_2

ACG wrote: »

You could apply for a mortgage or a bridging loan.

If you go for a mortgage, its probably worth finding one with no early repayment charges if your intention would be to pay it off when B sold.
If you have a bridging loan its quicker to arrange but would likely cost more.

We didn't want to borrow the maximum (400k) which we've been approved for, plus £100k bridging loan as it scared us! However, I think I understand what you mean because if the sale of B didn't go through this time we'd go straight back on the market hoping to go under offer again ASAP. We're in an area in London where properties are flying off the shelves.

Would we be best to apply for the mortgage before the bridging loan? Also, do you have any idea of rates for bridging loans as I've tried to find this info on line to no avail.

Thank you.

ACG

It might be worth sitting down a broker, I have just come up with a couple of suggestions but not sure if either would be the best option for you or not.

Bridging loans will vary depending on what LTV they are at. but would be anywhere from around 0.95% per month through to about 1.25% per month.