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Bridging loan ?

Ravens
Ravens Posts: 2 Newbie
Eighth Anniversary Combo Breaker First Post
Hi. I need to get some cash to purchase a house before I sell my existing mortgage free home. The new house will be less than the value I sell my existing home for. The obvious thought is a bridging loan but as I don’t know how long it will take to sell my existing home this could prove very expensive because of how long it may take. I’m thinking of meeting a financial advisor for their thoughts, but thought I would try this forum first for any views on those that may have experienced this themselves and have good ideas from their own experience. I have no issues with clearing the debt once my existing home sells but want the best economic approach. Thanks in advance for replies. 

Comments

  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Why can't you sell before you buy ?
    Easiest way to do it imo.
  • MinuteNoodles
    MinuteNoodles Posts: 1,176 Forumite
    1,000 Posts Name Dropper
    DCFC79 said:
    Why can't you sell before you buy ?
    Easiest way to do it imo.
    OTTOMH...
    House too small and impending expanding family, need to move. Got a new job in a different town/county, need to move. Ill health, need to move. There's countless very legitimate reasons why you may not be able to wait until your current home sells before moving.
  • Ravens
    Ravens Posts: 2 Newbie
    Eighth Anniversary Combo Breaker First Post
    Timing. If we don’t sell in time we lose the house we want to move to. Looks like a bridging loan is the only alternative.
  • bris
    bris Posts: 10,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Bridging loans are very expensive and for short term use. Get it wrong and you could very well lose everything.
  • Brock_and_Roll
    Brock_and_Roll Posts: 1,207 Forumite
    Part of the Furniture 1,000 Posts
    If there is ill health now, just wait for the mega stress of having an open bridge when (inevitable) delays and issues arise. Been there, got the tshirt.
  • normanna
    normanna Posts: 172 Forumite
    Fourth Anniversary 100 Posts Combo Breaker
    Ravens

    Don't panic about this.  There will be other houses if you don't get that house.  It's easy to say but a delay may be the best thing as gives you time to look at options.  Put your house on the market for a reasonable price and keep an eye on the house you want. - In today's climate especially I would not go for a bridging loan even if you can get one.
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