Bridging loan

Wanton

Hello,

I was wondering if anyone could offer any advice regarding bridging loans. We've recently had a house sale fall through which in turn meant we couldn't go ahead with our purchase.
I've heard of bridging loans before but don't really know a lot about them. So does anyone know if it would be viable/sensible to use a bridging loan to fund our purchase. The figures are as follows -

Mortgage free house on market at £144,950
New house purchase £250,000
Mortgage offered on new house at £111,000

Could increase mortgage to £120,000
Get bridging loan secured against current house to make up short fall.

Any advice would be greatly appreciated.

GMS

Is 120k the most you can get on the mortgage for the new purchase?


Bridging unlikely to be enough on the current property only.

TrickyDicky101

What would you do if the current house doesn't sell in the expected timeframe? Bridging loans - assuming available - would likely be more expensive than a mortgage. Can you fund both indefinitely if required?

Wanton

We were told we could get up to about £160k I think but don't really want to go too high long term. Looking more into it it seems like a non starter due to the risks pointed out by TrickyDicky. Thanks for the replies anyway, think we'll just have to wait for a new buyer to come along.

Thrugelmir

Bridging finance could cost you 1% - 1.5% a month. If your property doesn't sell then there's enormous downside.

Cheaper option would be to lower the selling price of your existing property to attract a buyer.