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Bridging loans and alternatives
maladict
Posts: 44 Forumite
We're in Scotland.
Our flat is the middle property in a chain of three. The seller of the house we're buying has already moved abroad to live with family, and we are supposed to be selling to a first time buyer. For some reason it's apparently the done thing now for everything to be concluded as late as possible. Our entry date was a fortnight ago and all parties were to sign everything in the week before that.
Our buyer has messed us around endlessly for the last three weeks, including going awol for days at a time, ghosting her solicitor and not sending paperwork to her solicitor. We've finally, belatedly, reached the conclusion that she's just wasting our time. We're desperate not to lose the house we're supposed to be buying.
A relative has taken pity on us and offered to pay for a bridging loan so that we can buy the house and put our flat back on the market. I've been trying to look into bridging loans but am struggling to find impartial information about them, or even how to go about trying to get one. Do highstreet banks provide them? Our mortgage is with RBS.
We've thought about converting the flat mortgage to BTL, but that's a route we really don't want to go down if we can avoid it.
The mortgage we're getting for the house is only half of what the bank was willing to lend us so we do have some more 'borrowing capacity', but we're borrowing what we felt comfortable with and don't want to get tied in higher repayments long term.
Are there any other options other than just letting the house go and starting over again, which we'd be heartbroken to do?
Thank you so much for any suggestions.
Our flat is the middle property in a chain of three. The seller of the house we're buying has already moved abroad to live with family, and we are supposed to be selling to a first time buyer. For some reason it's apparently the done thing now for everything to be concluded as late as possible. Our entry date was a fortnight ago and all parties were to sign everything in the week before that.
Our buyer has messed us around endlessly for the last three weeks, including going awol for days at a time, ghosting her solicitor and not sending paperwork to her solicitor. We've finally, belatedly, reached the conclusion that she's just wasting our time. We're desperate not to lose the house we're supposed to be buying.
A relative has taken pity on us and offered to pay for a bridging loan so that we can buy the house and put our flat back on the market. I've been trying to look into bridging loans but am struggling to find impartial information about them, or even how to go about trying to get one. Do highstreet banks provide them? Our mortgage is with RBS.
We've thought about converting the flat mortgage to BTL, but that's a route we really don't want to go down if we can avoid it.
The mortgage we're getting for the house is only half of what the bank was willing to lend us so we do have some more 'borrowing capacity', but we're borrowing what we felt comfortable with and don't want to get tied in higher repayments long term.
Are there any other options other than just letting the house go and starting over again, which we'd be heartbroken to do?
Thank you so much for any suggestions.
0
Comments
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A relative has taken pity on us and offered to pay for a bridging loan so that we can buy the house and put our flat back on the market. I've been trying to look into bridging loans but am struggling to find impartial information about them, or even how to go about trying to get one. Do highstreet banks provide them? Our mortgage is with RBS.
High street banks dont tend to get involved in anything thats not 'vanilla' at this point. Just not enough profit in mortgages for them to take a risk with it going wrong.
There are quite a few specialist lenders in this area though and rates depend on quite a lot of different factors. Its not as easy as seeking out a broker as a lot of companies will only deal with specialist packagers. For instance, I only have 2 or 3 companies I can do bridging through, but i have another company I can send details to who can access a dozen more.
Is a broker doing your mortgage? Maybe they can help referring you to the correct place.
Could you do it as a 2nd home loan? I've just done one of those where the chain collapsed and we just remortgaged the existing home to take a deposit out, and then took a new mortgage for the new property. Will just leave the existing one empty until the market improves. Thankfully I had affordability on my side with that case0 -
Thank you so much for your reply, you have no idea how much it's appreciated.
Unfortunately we didn't use a broker as we just went to our bank to port our existing mortgage, so we haven't had anyone to turn to for advice.
I'd never heard of second home loans but that sounds really interesting, we have a bit of equity in the flat and with our relative's help that could be a solution. I'll look into that and see how things look.
Thank you, it feels that there might be some light at the end of the tunnel after all.0
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