Bridging loans - Any positive experiences?

powerful_Rogue

Hey everyone, will keep this short and sweet!

Found dream home, been advertised since 31/07/20. Was £340k-350k, dropped a few weeks ago to £335k.

My house has been on the market since 26/08/20 - Received a call on Saturday for a viewing this Wednesday.

In the meantime, been looking at ways of trying to secure the purchase of the house we have seen. Spoke to my current mortgage provider on Saturday about additional borrowing on the mortgage. House valued at £170k, current mortgage is 49k. Would like to borrow 80k. I have secured a new AIP for £260k which takes into account paying the additional money for the extended mortgage if agreed.

Current Mortgage advisor said because they are only offering fixed rate mortgages, and we have our house on the market to sell, they might not be able to offer the £80k as we would incure early termination fees. They can't recommened a product that would lose us money. I explained I was fully aware of this had had factored it into my calculations. She is going to speak with the policy team tomorrow to see whether they will allow it or not.

Thinking worst case, i've looked at bridging loans - Has anyone used these before and how did you find the process?

hazyjo

Never look at properties if you are the type to get emotionally attached. What if it takes a year to sell yours? All you need is a couple of sales to fall through and it could easily be a year.

Bridging loans are not cheap and should be for fixed short term only. 

Unless of course you're very rich

powerful_Rogue

hazyjo said:

Never look at properties if you are the type to get emotionally attached. What if it takes a year to sell yours? All you need is a couple of sales to fall through and it could easily be a year.

Bridging loans are not cheap and should be for fixed short term only. 

Unless of course you're very rich

Easier said then done when a rare property comes up on a close we have always wanted to live on!

Ours would be a 1st time buyer/BTL property, and we do have some negotiation built into the asking price.

We also have some money in savings which could easily tide us over, however this would be for the short term.