Bridging Mortgage

MSMiser

Hi

Was looking for some advice with regards a bridging mortgage. Not sure if it would be viable or not?

The situation that I am in is: I have seen the house that I would like to buy at a very reasonable price of £235,000 the seller is looking for a quick sale hence the price. The only problem is that I don’t even have my own property on the market at the moment & would like a few weeks to complete a few jobs.
I Have been thinking if it would be possible to consolidate my own mortgage of £65000 and borrow the full amount of the new property in just one mortgage. Then when I sell my own house pay that off the mortgage. The house that I am in now is worth around £250000 so would be able the pay all of that off the loan when it is sold.

The only problem would be that I would be stretching my finances while I was paying the full loan of £300k so would like interest only until my house is sold then revert back to repayment mortgage for the next 20 years. Also not sure if I would be able to borrow the full £300k as I can only guarantee £45-50k wages per year (would be a mortgage in just my own name).

Has any one had any dealings like this or know of a mortgage company that would be able to help? (Preferably with a discount rate for the first year or so).

Thanks in advance.

lisyloo

I don't know if this is possible, but I think it's quite risky in the market we have at the moment.

I don't know your area but in general volumes are very low because there is a kind of stalemate between buyers and sellers. Buyers have plenty of choice and are looking for a bargain, sellers are often not prepared to cut the price unless they really have to with most choosing to stay put.
This means it can take an age to sell a property unless you are prepared to take a significant cut.

Are you prepared to take a cut or can you afford to pay the loan for a year?Are you covered for accident, sickness, redundancy etc?

Personally I think it's too big a risk.

MSMiser

Thanks for the responce,

I have given a lot of thought to the risks but still thinking it would be worth it, if it is possible? (dont have any dependants so can risk on things like this) I could afford the loan would just have to wait until my own house is sold until I could start on the renovation / extension on the new one.
Yes I am covered for accident, sickness etc and the line of work that I am in redundancy is not much of a worry. I'm just wanting to find out if there is a company that offers such flexibility, I am going to speak to an indepandent financial advisor but was just seeing if any members here could help first?.

Thanks again.