Remortgage/ bridging loan

JoanneLucy

Currently own house worth 250k with no mortgage. Seen propery we want for 255k and they need papers signed within 6 wks. We have 130k in cash need to raise 125k but have not put property we live in on market yet. What is our best option to get 125k out of this house( worth airing on side of caution predicted value of 250k.)
Would you advise bridging loan ?? (we tried remortgage on line but with our combined salaries of 45k they only offered 58 k) who would you recommend with lowest payback rate

.many thanks 

jonesMUFCforever

Call their bluff - if you don't have the money then you don't have it. A bridging loan would cost you an arm and a leg if you could get one.
I am pretty sure that if you have salaries of £45 K then you should get a lot more than a mortgage offer of £58 k unless you have other debts not mentioned.

Nats001

Mortgage lenders can lend on average 4.5 times your salary before any outgoings are taken into account so unless you have a huge amount of debts or a lot of outgoings, I would be surprised that you cannot get more than that on a mortgage based on a salary of £45000, however I take it they worked out the affordability based on your current remortgage remaining in place? A bridging loan is a good short term option- it costs a bit more than a regular remortgage but rates have become more
competitive and most lenders have no early repayment fees so you would only pay interest for the months you have the loan for. 

jonesMUFCforever

Nats001 said:

Mortgage lenders can lend on average 4.5 times your salary before any outgoings are taken into account so unless you have a huge amount of debts or a lot of outgoings, I would be surprised that you cannot get more than that on a mortgage based on a salary of £45000, however I take it they worked out the affordability based on your current remortgage remaining in place? A bridging loan is a good short term option- it costs a bit more than a regular remortgage but rates have become more
competitive and most lenders have no early repayment fees so you would only pay interest for the months you have the loan for. 

A bridging loan has substantial set up costs often going into many thousands - they don't need to charge an early settlement fee.