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Bridging Loan to secure property

suecoo66
suecoo66 Posts: 116 Forumite
Part of the Furniture 100 Posts Name Dropper Photogenic
We are looking to move and will be putting our house on the market soon but have already noticed how quickly property is selling (the decent ones) so want to be in a position to buy a chosen property quickly and be in a good position to negotiate.
We were wondering about the possibility of getting a bridging loan to do this? We don't have a mortgage on our current property.
What happens if you haven't sold by a certain period?

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    It may well be possible yes.

    They are pretty expensive and so if its likely to be for longer than around 6months then you may find it cheaper to mortgage your current property to do the transaction instead (finding a mortgage with minimal repayment fees etc).
    What happens if you haven't sold by a certain period?

    You keep paying the high interest on the loan, or you try to mortgage the new property or at an extreme possibly have to resort to considering selling the new property.
    A smile enriches those who receive without making poorer those who give
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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Rates are around 1.25% to 1.5% a month for bridging finance.
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