Bridging Loan the option.

herringn

Help please,

I have made an offer on a house 10k (360k) more than i know the vendor will accept.

He has stated the next offer of 350k in a proceedable position will be accepted.

My 3 bed house has been vauled at 425k and i am due to be on the market after pictures and floor plan have been completed on Friday. i only have 90k left on my current mortgage.

The problem is, the new house is being sold quickly due to the owner passing away. its an absolute bargin with 4 beds and a garage. Its a third larger square footage than mine, and wont be on the market long. The house is worth 400k all day long. IMO

do you think a briding loan would be the option for me, i am concernd about mine not selling quickly as it is the first new build in my small delovpmet to go on sale.

I purchased 3 years ago at 350k, so i know the estate agent is being optomistic but i have plenty of wiggle room with my small current mortage.

my broker is looking at 100k loan to take a new mortgage on the new property.

I am worried, does it sound achiveable and a good/safe option to take. i really want this house as we are runing out of room and this could be our chance.

Any advice, good or bad welcomed.

hazyjo

Why offer if not proceedable?

Without knowing your income/expenditure, it's impossible for us to say. If your broker thinks you can do it, go for it.

Personally, I'd only advise taking a bridging loan for a small fixed amount of time. Not months or god forbid even longer!

What if it takes you six months to find a buyer and another 3 months for the sale to go through?

You say you're selling a new build. Are they still building new houses, or are they all now effectively 'second hand'?

Another bit of advice for others - never view if you're going to fall in love with a house. I have viewed loads before being under offer. Many being a distant memory by the time I've got a complete chain beneath me! Many I've been sad I've not been able to buy, but there's always been a better or equally nice option turn up eventually.

davidmcn

herringn wrote: »

I am worried, does it sound achiveable and a good/safe option to take.

Open-ended bridging is never a safe option. You have no idea when your property will sell or for how much.

martin1959

I have advised my prospective EA that I do not want any viewings by anyone who is not either a cash buyer, or does not have a completed chain below them.........

I am not wasting time showing tourists around.......

getmore4less

How much of the £360k do you have in cash
What's your max lending across both properties?

Any friends/relatives that can pony ups some funds?

I have made an offer on a house 10k (360k) ....
The house is worth 400k all day long. IMO
.........
I purchased 3 years ago at 350k, so i know the estate agent is being optomistic but i have plenty of wiggle room with my small current mortage.

if you think there is £40k more in the place, would another £20k be a big enough incentive for the beneficiaries to wait?

What does you market analysis say the price your house needs to be 2 sell quick?

you have done your own market analysis?