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Bridging Loan
wilko99
Posts: 29 Forumite
My wife has a property which she is currently renting out in Birmingham. We live together in Stoke on Trent. What I am looking to do is to sell the house we are currently living, the value is £170000 and pay I would buy her house for the amount outstanding on her mortgage. Which is £87000.
The house needs to renovated after the tenants move out, approx. costs there £25000-30000. I want the work done before we move in, and whilst we need to sell the house in Stoke.
To pay for the refurbishment, is it the best way, to get a bridging loan.
Then once the house is sold, in Stoke, pay off the loan.
I have a balance of 95k mortgage on the house in Stoke, which after selling would give me around 75K in the pocket.
Whilst the refurb was happening, the wife will continue to pay her mortgage and once completed, we would sell in Stoke, move into property in Birmingham and then I would buy it.
I would be looking at porting my current mortgage over to the new property, if that's possible.
If not, I would still have the money, after refurbishment costs as a deposit on a new mortgage.
For a house in her street, values for the same property, in good condition, are around £130,000.
I hope this all makes sense?
Does anyone see any pitfalls with this?
The house needs to renovated after the tenants move out, approx. costs there £25000-30000. I want the work done before we move in, and whilst we need to sell the house in Stoke.
To pay for the refurbishment, is it the best way, to get a bridging loan.
Then once the house is sold, in Stoke, pay off the loan.
I have a balance of 95k mortgage on the house in Stoke, which after selling would give me around 75K in the pocket.
Whilst the refurb was happening, the wife will continue to pay her mortgage and once completed, we would sell in Stoke, move into property in Birmingham and then I would buy it.
I would be looking at porting my current mortgage over to the new property, if that's possible.
If not, I would still have the money, after refurbishment costs as a deposit on a new mortgage.
For a house in her street, values for the same property, in good condition, are around £130,000.
I hope this all makes sense?
Does anyone see any pitfalls with this?
Be ALERT - The world needs more LERTS
0
Comments
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You can't usually port a mortgage over to a property you already own. Likewise you also have to apply to port like any other mortgage. It's not a given.
Bridging loans are not cheap. Can you not do a secured loan instead?that would usually be cheaper.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You can't usually port a mortgage over to a property you already own. Likewise you also have to apply to port like any other mortgage. It's not a given.
Bridging loans are not cheap. Can you not do a secured loan instead?that would usually be cheaper.
The new property is owned by my wife, not me, I will be buying it from my wife. So porting my mortgage, would that still be an option?Be ALERT - The world needs more LERTS0 -
Probably but I would suggest speaking to the lender.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Bridging loans - very expensive and even more stressful from personal experience.
Only to be considered in the final resort IMHO.0
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