Bridging Loan?

LateStarter

Well after the girlfriend's house sale collapsed in December, we've had to drop out our purchase (her dream house) and offer on something a bit more affordable. Now it seems the seller is playing silly !!!!!!s because even though he's chain-free (he's moving in wth someone else), he seems to be delaying at every turn. This has included cancelling the valuation at the last minute, and taking days to respond to the EA - so I'm trying to plan for the "what if" scenario.

We're approximately 65K short of what we'd need to get the bigger house, based on my maximum mortage affordability. And there's at least twice that in the equity of her house - when it eventually gets sold.

Is this where a bridging loan comes in? I've done the googling and there's a lot of advice not to do it. But I've got a couple of specific questions.
1. Do you declare a bridging loan to the mortgage lender? Does that affect your chance of being approved?
2. What's the collatoral for the bridging loan - her house or our new house?
3. How do you repay a bridging loan - is it monthly or at end of term? Repaying a loan and a mortgage every month would really not be ideal.

Thanks for any answers.

nomoneytoday

IANA Mortgage advisor, but what about remortgaging her house until it sells? Probably cheaper than a bridging loan?

amnblog

If your vendor is messing you around I would not spend any money on any lending. What is he decides not to sell?

Thrugelmir

LateStarter wrote: »

Now it seems the seller is playing silly !!!!!!s because even though he's chain-free (he's moving in wth someone else), he seems to be delaying at every turn.

Sounds as there's an underlying reason to stall the transaction. Suggest that you continue to look for a new home elsewhere.

LateStarter

Oops, I guess I didn't explain properly.

Seller of second (cheaper) house is the one dawdling, which is why I'm wondering if we should try to go back the more expensive house we originally wanted.

The g/f can't get anything from her mortgage lender - unemployed full-time carer of her disabled younger sister. Her kids have recently left home, so her ex-husband no longer pays any maintainence (which funded the mortgage repayments).

I'm sort of stumped because when I called a mortage advisor (the one starting with L), they never suggested bridging.

Thrugelmir

LateStarter wrote: »

I'm sort of stumped because when I called a mortage advisor (the one starting with L), they never suggested bridging.

An expensive option that most people baulk at unless it's very short term .