Bridging loan for park home?

jessboots

We’re selling our house and moving into a retirement park home site, we’d like to buy the park home first because it needs work, and put our house on the market at the same time, so we’ve got somewhere to live whilst the work is completed. There are no mortgages involved, we don’t have any loans.. Our bank isn’t interested. 

Does anyone have any suggestions? 

Herzlos

I don't follow. You don't have a mortgage on your current house, and presumably will be able to fund the new house from the sale of the current house, so you're just trying to get a loan / mortgage for the new house which you'll clear shortly?

MalMonroe

I'm not sure why your bank isn't interested. What about other lenders, is it possible that someone else would be interested?

If you HAD to sell your old place to fund the new place, would you be able to do that? I know it's not nice living in a building site but my ex-husband and I did it years ago when our child was a toddler. I'm not saying it was easy but we ended up with a nice house even though we had to put up with a bit of mess while the work was going on. 

My friends also lived in an old 2 berth caravan with three children under the age of 5 while their building work was going on. 

Or could you stay with any relatives?  

Just a few ideas, sorry if they're rubbish!

Grumpy_chap

jessboots said:

retirement park home site, 
Our bank isn’t interested. 

You don't say how old you are, or what your income is (the type / security of the income).

You are also looking for a mortgage and lenders are not always keen on a mortgage lending if the expectation is to clear it in short time frame as mortgages are designed as long-term products.  If you are a more mature mortgagee, then that mortgage time frame may take you beyond the age limit that the lender imposes.

Finally, a mortgage on a park home may not be attractive to a lender as, depending on the type of park home, these are often seen as depreciating assets.  Plus, the site fees can be an concern if there are no rules on the increases - especially as this would be your only home, so you couldn't just sell up and forget the whole thing if the fees became unaffordable.

A mortgage on the current property may be more attractive to a lender (because of the security).  Obviously, you can't then say you plan to spend the money on a park home as they'd revert to above.  You also need to be truthful as to the use of the loan so as to avoid fraud accusations and immediate repayment demand.

There is a big difference between acquiring a retirement park home at age 50 or over compared to buying your first home at age 20-something or 30-something.  Also a big difference between buying a park home at age 50 compared to buying a mansion at age 50.  All particularly in a lender's eyes.

[Deleted User]

Grumpy_chap said:

jessboots said:

retirement park home site, 
Our bank isn’t interested. 

You don't say how old you are, or what your income is (the type / security of the income).

You are also looking for a mortgage and lenders are not always keen on a mortgage lending if the expectation is to clear it in short time frame as mortgages are designed as long-term products.  If you are a more mature mortgagee, then that mortgage time frame may take you beyond the age limit that the lender imposes.

Finally, a mortgage on a park home may not be attractive to a lender as, depending on the type of park home, these are often seen as depreciating assets.  Plus, the site fees can be an concern if there are no rules on the increases - especially as this would be your only home, so you couldn't just sell up and forget the whole thing if the fees became unaffordable.

A mortgage on the current property may be more attractive to a lender (because of the security).  Obviously, you can't then say you plan to spend the money on a park home as they'd revert to above.  You also need to be truthful as to the use of the loan so as to avoid fraud accusations and immediate repayment demand.

There is a big difference between acquiring a retirement park home at age 50 or over compared to buying your first home at age 20-something or 30-something.  Also a big difference between buying a park home at age 50 compared to buying a mansion at age 50.  All particularly in a lender's eyes.

Plus, the costs owed to the site from the sale - they take a percentage of the sale price.  
I know of 2 couples that would love to move off their sites but these things are preventing them, both couples in their 60s, both couples feel absolutely stuck 😞

[Deleted User]

MalMonroe said:

I'm not sure why your bank isn't interested. What about other lenders, is it possible that someone else would be interested?

If you HAD to sell your old place to fund the new place, would you be able to do that? I know it's not nice living in a building site but my ex-husband and I did it years ago when our child was a toddler. I'm not saying it was easy but we ended up with a nice house even though we had to put up with a bit of mess while the work was going on. 

My friends also lived in an old 2 berth caravan with three children under the age of 5 while their building work was going on. 

Or could you stay with any relatives?  

Just a few ideas, sorry if they're rubbish!

Because it's an unsecured loan which is likely to be very high (40-250k looking at a selling site) - they are basically after an unsecured mortgage to buy the park site with the intention of paying it off as soon as the house is sold.

Would you lend to someone to buy a house without the security of having the debt secured on the building - of course not - hence the bank isn't interested.

OP should either apply for a mortgage on the new house (though likely their age and lack of income will count against them) or more realistically sell their home and then buy the park home 

Ebe_Scrooge

Deleted_User said:

MalMonroe said:

I'm not sure why your bank isn't interested. What about other lenders, is it possible that someone else would be interested?

If you HAD to sell your old place to fund the new place, would you be able to do that? I know it's not nice living in a building site but my ex-husband and I did it years ago when our child was a toddler. I'm not saying it was easy but we ended up with a nice house even though we had to put up with a bit of mess while the work was going on. 

My friends also lived in an old 2 berth caravan with three children under the age of 5 while their building work was going on. 

Or could you stay with any relatives?  

Just a few ideas, sorry if they're rubbish!

Because it's an unsecured loan

I'm a little confused here.  I'm assuming the OP has applied for a bridging loan (going by the title of the thread) - a bridging loan is secured against you current property.  So if it is indeed a bridging loan they've applied for, it's not the fact that it's unsecured that is the problem (in and of itself).  There may of course be other reasons why the bank are not happy about lending.

[Deleted User]

Ebe_Scrooge said:

Deleted_User said:

MalMonroe said:

I'm not sure why your bank isn't interested. What about other lenders, is it possible that someone else would be interested?

If you HAD to sell your old place to fund the new place, would you be able to do that? I know it's not nice living in a building site but my ex-husband and I did it years ago when our child was a toddler. I'm not saying it was easy but we ended up with a nice house even though we had to put up with a bit of mess while the work was going on. 

My friends also lived in an old 2 berth caravan with three children under the age of 5 while their building work was going on. 

Or could you stay with any relatives?  

Just a few ideas, sorry if they're rubbish!

Because it's an unsecured loan

I'm a little confused here.  I'm assuming the OP has applied for a bridging loan (going by the title of the thread) - a bridging loan is secured against you current property.  So if it is indeed a bridging loan they've applied for, it's not the fact that it's unsecured that is the problem (in and of itself).  There may of course be other reasons why the bank are not happy about lending.

t wasn't entirely clear from OP post whether the title was what they had applied for or just what they had heard mentioned and they had simply asked the bank about funding for the period between buying and selling.

Bridging loans of course are not mainstream hence why the bank won't do them

Ebe_Scrooge

Deleted_User said:

Ebe_Scrooge said:

Deleted_User said:

MalMonroe said:

I'm not sure why your bank isn't interested. What about other lenders, is it possible that someone else would be interested?

If you HAD to sell your old place to fund the new place, would you be able to do that? I know it's not nice living in a building site but my ex-husband and I did it years ago when our child was a toddler. I'm not saying it was easy but we ended up with a nice house even though we had to put up with a bit of mess while the work was going on. 

My friends also lived in an old 2 berth caravan with three children under the age of 5 while their building work was going on. 

Or could you stay with any relatives?  

Just a few ideas, sorry if they're rubbish!

Because it's an unsecured loan

I'm a little confused here.  I'm assuming the OP has applied for a bridging loan (going by the title of the thread) - a bridging loan is secured against you current property.  So if it is indeed a bridging loan they've applied for, it's not the fact that it's unsecured that is the problem (in and of itself).  There may of course be other reasons why the bank are not happy about lending.

t wasn't entirely clear from OP post whether the title was what they had applied for or just what they had heard mentioned and they had simply asked the bank about funding for the period between buying and selling.

Bridging loans of course are not mainstream hence why the bank won't do them

Spot on

Let's hope the OP comes back to clarify