Bridging loan and alternatives?

bugs

We own a house outright and are looking at buying another to move to, then sell our existing house early next year (after repairs/renovations are complete).

We need to borrow about 60% of the value of the second house (about 40% the value of both properties together) for about a year. Our salaries do not currently allow this (the amount would be 10x the gross salaries for a normal mortgage) and bridging loans seem expensive.

Are there places where such a high multiple of salary would be acceptable or where a reasonable bridging loan could be arranged?

kingkano

Could you not BTL your current property but perhaps not manage to find a tenant

bugs

A BTL mortgage has been suggested but both properties are not that rentable without a great deal of work.

Does such a product as "Buy to Sell/Renovate" exist or are there any other ideas?

petermb_2

Try your bank?
they may be helpful

regards

Peter

bugs

Yes, we will try and discuss with our banks but firstly we'd like to find out what's available, so we know what to ask for and also know if we are being offered something which is too expensive or unsuitable...

Thanks for the suggestions - wish I could think of something else!

petermb_2

Bridging loans are expensive and secured loans tend to be over longer periods, ie min 3 years. That is why I suggest that you see your bank. They may be able to help with a secured loan with a reasonable interest rate without hidden commissions and fees

regards

PETER.

JoeK_3

For your bank to proceed and agree, they will probably want to take both properties as security in case you default on the mortgage.

Could you afford the repayments?

JoeK

MakesSense_3

I used a bridging loan to secure the purchase of a property after the buyers of my property pulled out at the last minute. I first heard of bridging loans thorough a friend who also had previously experienced the same situation. Unsure at first about what it involved and how much it would cost to take on, I decided to call up some independent financial advisers to find out more information.

I always suggest that you should speak to 2 or 3 independent advisers before deciding to take on a bridging loan because they may be able to advise you if they are any alternatives. If you do decide to take on a bridging loan make sure that you are 100% confident that you have looked at all the options and you are in no doubt.

I organised my bridging loan through Hampshire Trust based on a recommendation from an IFA and because they specialise in bridging loans. However, make sure you find a lender that will meet your needs and will give you the best advice.

Paul

JoeK_3

This is spam

JoeK