Bridging loan or is there another way?

Stuckupahill

Hi, could someone give me some advice please ....
Just found our dream house today - which costs 325k - and the sellers want a quick deal.
We also want to move quickly as my wife is expecting our first child and we'd like to be settled long before the baby arrives (due late march).
Trouble is ... as we were only half looking at houses we haven't got round to putting ours on the market yet.
We could get a bridging loan while ours sells - but does anyone know of a better (cheaper!) way of doing it.....
We're in the fortunate position of having almost no mortgage (3k) because of an inheritance. We think our house is worth around 220k - there's a similar one going for that in our street - though it has been up for sale for 6 months....
I earn around 35k and am 41 - we've got no other debts...my wife doesn't work.
I'm not sure renting our house would generate enough monthly income to make it worthwhile - rented houses in my area go for 700-800 a month. Any other ideas would be appreciated
Thanks for reading
Andy

toonfish

another option is to raise a buy to let mortgage on your current property, and use this to fund the deposit for a conventional mortgage on the new place. It will need some detailed calculation though, and be dependant on the affordability and ease of finding a tenant.

Bridging is expensive, and only viable if you have a buyer in place already - otherwise you could end up in over your head.

MortgageMamma

there is also another option offered by one lender i know of called chain repair, this is where if you need to complete quickly, you have at least 25% equity in your house and can afford both mortgage payments they will allow you to complete on the new property. if you needed to raise a deposit for your new property from your old property you could just take a further advance from your existing lender on standard variable rate and pay it off when your property sells. this method saves on expensive bridging loans and also prevents you having to go to the trouble of letting the property.

Stuckupahill

Hi, thanks for the advice....went to a professional independent broker - who's given me a few suggestions...simplest option is to part remortgage current house to pay for deposit on new one and price it on the market to sell quickly - if not then rent it out. But thanks again for replies....
Andy