Bridging vs Maxing out C cards

FirstClassMale

We have seven days between the taking on of our new house and handing over my flat, we have tried to contact my bank about bridging loans for the 13k deposit required and they dont seem to have a clue.
What is a ball park figure as to what it would cost us and is it just the deposit we need to cover as my flat sale will not have completed by then.

The other option I considered was to use my credit cards to pay the £13k but I have quite a balance on them (which would be paid in full once the equity of the sale comes through) so would need to apply for an increase in my limit. How will this affect my scoring after a recent oversight where 2 payments were missed on one of my cards due to a direct debit not being set up on time?

It is the Scottish system and, as such, everything is agreed and legally binding at this stage. We got such a good offer we did not want to rock the boat trying to shift the moving dates

Put very simply, we get the new place one week before the buyer of this place wants to get entry so there is a week where we have two properties.

Does a bridging loan have to be for the fullprice paid or just for the deposit coming from the sale of my flat seven days later?

Joe_Bloggs

As time is short why don't you ask your conveyancing solicitor what to do. Ask if this situation has occured in the past. I think the credit card option is a non starter and you are going to have to find all of the money and not just the difference in property prices for the week. Insist on speaking to someone more senior at your bank or other lending institution if you cannot be understood. Perhaps your solicitor can help to get your point over.
J_B.

FirstClassMale

Thanks J B. It was actually my solicitor who recommended getting a bridging loan as we got an offer well over the asking price and didn't want to muddy the waters by coming back to them demanding an earlier entry date.

My bank did get back in touch and quoted 0.3% of the loan amount plus6.59% daily interest. What I was trying to do was save any interest charges completely by putting the amount on my credit card for one week then paying off the full amount.

budgetflyer

If your bridging for only a week or 2 it would be less hassle just to sort out bridging. you should be able to do it for under 2% so its only really going to cost you £2 or £300.
http://www.lloydstsb.com/rates_and_charges/loans_rates_curr_page.asp#bridging%20loan
looks like a reasonable deal

budgetflyer

FirstClassMale wrote:

Thanks J B. It was actually my solicitor who recommended getting a bridging loan as we got an offer well over the asking price and didn't want to muddy the waters by coming back to them demanding an earlier entry date.

My bank did get back in touch and quoted 0.3% of the loan amount plus6.59% daily interest. What I was trying to do was save any interest charges completely by putting the amount on my credit card for one week then paying off the full amount.

surely they mean 6.59% APR, BUT CHARGED ON A DAILY RATE in which case I would think thats better than the Loydes rates above.