Bridging Loan or short term mortgage? Help!

Aki123

Hi, Can anyone help please as I haven't had anything to do with mortgages or loans for several years?

I need my parents to move closer to me. The perfect house has come up in my road which will sell in days, I know others in our road who will also want it. My parents' house isn't even on the market yet. We have no mortgage, is there a way to use our house to secure the finance but not lock us in for more than a few months until their sale goes through?

Any ideas welcome, thanks!

dwsjarcmcd

You mention using your house, which would be difficult for a Regulated Bridge as your property would need to be for sale with that type of Bridge. Do your parents have a property to sell?

The other option would be to raise a mortgage on yours, provided income/affordability stacks up on a product that has no Early Repayment Charges.

Obviously you have not included any details - value of current home, proposed parents home etc. so can't say whether either route is possible but in your position, i would speak to a broker.

foxy-stoat

Why not go and make an offer on the house, if its a good enough offer and you can convince them to accept it, get your parents to put their place on the market priced reasonably and hope it sells quick.

Aki123

dwsjarcmcd wrote: »

You mention using your house, which would be difficult for a Regulated Bridge as your property would need to be for sale with that type of Bridge. Do your parents have a property to sell?

The other option would be to raise a mortgage on yours, provided income/affordability stacks up on a product that has no Early Repayment Charges.

Obviously you have not included any details - value of current home, proposed parents home etc. so can't say whether either route is possible but in your position, i would speak to a broker.

Hi, thanks for the reply.
My parents have a house to sell, which will be approximately 50% of the price of the one they want to buy. My brother and I will cover the rest at 25% each. He lives outside the UK and is planning to add this to his mortgage, I will be using savings (me & OH) if I can.

Probably a daft question, but where to I start to look to find a reputable broker?

Thanks again

dwsjarcmcd

foxy-stoat wrote: »

Why not go and make an offer on the house, if its a good enough offer and you can convince them to accept it, get your parents to put their place on the market priced reasonably and hope it sells quick.

I would agree with this but would also have a 'Plan B' if it didn't sell quickly. If your parents do have a property to sell and they are downsizing, then consider the bridging route (be aware of the fees and rates that apply) or if not then consider mortgaging your own for a short period.

Aki123

foxy-stoat wrote: »

Why not go and make an offer on the house, if its a good enough offer and you can convince them to accept it, get your parents to put their place on the market priced reasonably and hope it sells quick.

Thanks, I will. It's a tiny bit awkward as it's actually my semi-detached neighbour, he's very old and frail so his son is dealing with it all, and I think he already has somewhere to move to, so is keen to leave ASAP.

Thanks again

dwsjarcmcd

Aki123 wrote: »

Hi, thanks for the reply.
My parents have a house to sell, which will be approximately 50% of the price of the one they want to buy. My brother and I will cover the rest at 25% each. He lives outside the UK and is planning to add this to his mortgage, I will be using savings (me & OH) if I can.

Probably a daft question, but where to I start to look to find a reputable broker?

Thanks again

Ok so that rules out the Bridging route. Regarding finding a mortgage broker, see if you can get any recommendations from family and/or friends.