bridging mortgage

myright

Hi guys

currently I own a house outright. But I want to buy a new house for living in.

someone asked me to look at bridging mortgage.

How does this work? Is it a good idea

amnblog

Bridging enables you to raise funds in days rather than weeks and is used therefore for transactions that need to be swift. For example if it means the difference of securing the deal.

The lending can be secured on the new property or your existing property or both. If you intend to live in the property it is regulated bridging which not all providers do.

Rates differ totally from normal mortgages and loan terms are generally 12 months max. The intention is that you have a route to repay the loan after a few months - sale of property or remortgage.

Rates will be around 1% a month for higher loan to values with sizeable set up costs.

You need to arrange this via a broker.

Thrugelmir

myright wrote: »

Hi guys

currently I own a house outright. But I want to buy a new house for living in.

someone asked me to look at bridging mortgage.

How does this work? Is it a good idea

Why not market your existing property for sale first?

amnblog

That doesn't work if you need a swift purchase completed.