Mortgage application - bridging loan from family

SalsaDanca

Hi,

I've seen a house that I'm interested in. I live in an area that's within commuting distance of London, so it's rare to find anything that I like that's within my price range.

The house is being sold chain-free, so it's likely to sell quite quickly. I would be funding the purchase by a combination of savings, a mortgage, and the sale of my flat. The flat isn't even on the market yet, but my parents have very generously offered me a bridging loan so that I can make an offer on the house before the flat has been sold. The loan from my parents would be repaid when the flat is sold, so probably within a few months.

The question is: will I be able to get a mortgage? I was looking at 10 year fixed rate mortgages at about 3.15% - 3.25% from Nationwide (my current lender), TSB, or Barclays. I've phoned all three this morning.

The adviser at Barclays said that the bridging loan from my parents would probably be acceptable, as it wasn't a formal credit agreement, but he couldn't be certain. His suggestion was that I put in a mortgage application and see what happens.

Nationwide and TSB said that they don't accept bridging loans. I spoke to them before I spoke to Barclays, so maybe they would have been happier if I'd avoided the phrase "bridging loan" and just referred to it as a loan from a family member who would have no interest in the property.

I realise that this is probably an unusual situation, so I may have to find a broker, but does anyone have any experience or advice that they can offer?

Thanks,

Rob

ACG

Gotta love Woolwich there havnt you.
"I dont know, lets apply."

Im sure it can be done. Whether its with any of those lenders I am not sure but I am pretty sure normal rates will be achievable. It could be worth speaking to a broker a little more formally jsut to see what your options are.

Thrugelmir

SalsaDanca wrote: »

The house is being sold chain-free, so it's likely to sell quite quickly.

Is it a probate sale ?

SalsaDanca

Thrugelmir wrote: »

Is it a probate sale ?

Thanks, that's a useful suggestion and something I should have thought of myself.

The listing doesn't give any further details about the reason for sale. I'll see if the estate agent has any more information.

SalsaDanca

ACG wrote: »

Gotta love Woolwich there havnt you.
"I dont know, lets apply."

Yes, that reply filled me with confidence.

I'll make an appointment with a local broker and see what they can suggest.

Thrugelmir

SalsaDanca wrote: »

Yes, that reply filled me with confidence.

Front line staff aren't empowered to make decisions on behalf of the bank. For good reason as well ! (No offence intended to anyone who reads this comment).