6 week bridging period, what are my options?

anskills

hi,

we are currently in the process of trying to buy a new build house in scotland. there is an incentive of £20k discount on the property to complete legalities and move in by 21st Dec. I am also currently in the process of selling my property and hope to be in a position to sign the missives and move by this date. I estimate i will have £60k equity, to be put towards the new property, once my flat is sold.

However, i have agreed a move in date to my flat of the 30th of january, which is non negotiable due to the chain of move-ins dates. This therefore leaves a period of 6 weeks where we will own 2 properties. Im fully willing to pay any charges for this period, as the £20k discount outweighs any bridging costs.

I have a meeting with a mortgage advisor on friday, and am awaiting a call from my IFA, but in the mean time i wondered what peoples advice on here may be. I understand bridging is costly and comes with arragement fee's. Alternatively, I have heard that it may be possible to take out a 2nd mortgage to cover the full amount of the 2nd property, and then pay the outstanding £60k of my equity once i have received it 6 weeks later.

has anyone been in this situation before, or could possibly offer their advice?

many thanks

kevin

silvercar

The easiest way is to take a larger mortgage for the new proprty that covers all you need without having to sell the first. You need to make sure it has no early redemption penalties. They you can pay a chunk of it off as soon as you complete the sale on your current home. You need to have an income that can justify the larger mortgage or an understanding bank manager.