Bridging Loan?

Bertie99

Hi
we are putting our house on the market tomorrow. Value is around 335k. We have savings to help purchase/costs. 

Found a house we love but seller keen to live as have found a property to move to. 

Happy with cost of house to buy 325k but don’t want to lose it.
is a bridging loan an option?
is it as simple as a provider giving us 325 against our home to pay for this one thrn we pay it back when ours has sold? And I’m struggling to see interest rates? Anything else I need to be aware of?
thank you 

TadleyBaggie

Bertie99 said:

seller keen to live 

Aren't we all!

Bridging loans are notably expensive and a niche product, affordability may be an issue. I had the use of one once, but that was being funded by my company when were very keen on me moving.

youth_leader

I'm surprised you were able to view and offer as you aren't proceedable. 

I hope you find a buyer soon and can enjoy a quick conveyance.

Bertie99

Thank you both. 

On reflection, it may be the best option is to offer over asking price (it’s under so she can move to her seaside dream), we accept a lower than ideal offer on ours, hope for a no chain buyer and hope the seller accepts that. We can afford the difference
quedtion is how much over? It’s in at 335, worth much more. Needs all cosmetic work doing - is 335 good?

Bertie99

Not enough coffee! It’s on at 325,000. Is an offer of 335 good enough I wonder 💭 

MultiFuelBurner

It's worth whatever you think it's worth to be honest.

Will 10k stop and make the seller think and take you seriously. Yes probably and that may buy you some time to get yours sold.

Are you realistic with your house price, will it sell quickly as the seller moving to the seaside may stipulate buyer needs to be found in (X) weeks if they know you have only just gone to market.

Chop-D

We recently had similar thoughts about a bridging loan, but decided it was a waste of money! The arrangement fee on its own was 2% plus £2000 for legal etc. Then for a £350k loan, paid back after 1 month was 359k upto after 12 months 383k. I wouldn’t recommend putting an offer on a house until you are proceed-able. We received an offer on our house where they still needed to sell and we didn’t count it as a real offer. Definitely wouldn’t take my property off the market until theirs was sold. We waited until ours had an offer before making our offer, and it was accepted as we were ready to go.