Bridging loans to finance purchase of houses

molit

Hi


I was wondering if anyone had any tips on bridging finance, and good places/brokers and generally ways of financing the purchase of auction properties etc. I have seen a few links, and appreciate some of the risks but would also like to understand if people have done it and how they found it


Cheers


M

silvercar

I know someone that used these people with no problem:

http://www.alternativebridging.co.uk/owner-occupiers/

desperate_times

My only advice is to be very careful of brokers charging up front fees to "secure a facility" or manage the application. I almost got stung a few years ago. They make it sound like all approved subject to property valuation and then it goes to full underwriting and all kinds of questions get asked. In the end it was ok but would be very wary of paying significant up front fees in the future although this seems to be very common (unlike with mortgage)

ACG

Bridging is expensive.

Usually comes with an admin fee of 2%, rates in the region of .7% upwards per month, legal fees and valuation fees on top.

So long as your aware of that and can still make it fit then happy days.

Some brokers also charge fees on top ranging from £500-2500 as standard. For me that should depend on the size of the commission but ach to their own.