How do bridging loans work?

panichousebuyer

Doozergirl wrote: »

Yes tenants won't be best pleased if the house is for sale and if you are trying to sell your house it's appeal is greatly reduced and if you get tenants in and then put the house for sale, your tenants are likely to give you notice as soon as you can blink.

Tenanting a house is not the way to sell it.

This two house malarky is just such a risk and it's for all the wrong reasons. Please, you'd be taking far less financial risk if you let your house and rented somewhere else. You don't want to expose yourself to more debt than you need to.

What is your opinion on putting the house up at a reduced rate as you suggested, if we have had no interest in a couple of months then rent in the catchment area (obviously having to move in to the rented house)? We can afford to do this (only just) for a short term until we have heard about school places. Then move back until the house sells.

Also if you enter into a six monthly tenancy agreement and then give notice after a couple of months do you have to pay any costs or continue paying rent for the agreed term?

I know that two houses, even in the above situation are not the ideal, but we do not have many options. I have to move back into the area so that the children are not split between schools.

Another thing is if the house is valued at around £215,000/£210,000, what would you put the house on the market for to get a quick sale?

fc123

Are you sure that moving to the catchment area will get her a place ?
We re-located and the LEA blatantly lied to us. They said to apply and she would get offered a place (the house we moved to was 2 roads away) but she was turned down despite them admitting others after term had started.
We ended up having no school place 3 wks into the 1st term.
She was offered sink school 5 miles away

We ended up paying but, the advantage of that is we can live where we like now.
With lots of kids this wouldn't be an option (unless you're loaded of course).

Just double check that the move WILL get the school place.
Bridging loans aren't a good adea at all unless you can afford loan and mortgage comfortably for a long time.
Sorry can't be of more help.

panichousebuyer

fc123 wrote: »

Are you sure that moving to the catchment area will get her a place ?
We re-located and the LEA blatantly lied to us. They said to apply and she would get offered a place (the house we moved to was 2 roads away) but she was turned down despite them admitting others after term had started.
We ended up having no school place 3 wks into the 1st term.
She was offered sink school 5 miles away

We ended up paying but, the advantage of that is we can live where we like now.
With lots of kids this wouldn't be an option (unless you're loaded of course).

Just double check that the move WILL get the school place.
Bridging loans aren't a good adea at all unless you can afford loan and mortgage comfortably for a long time.
Sorry can't be of more help.

If we are in the area for the forms going in it shouldn't be a problem, but then like I said before there are no guarantees with anything.

We just have the big problem that if she doesn't get into this school then our eldest will have to go to a different secondary to her three siblings or our youngest two will end up in two different primary schools. As I am the only one that can take them to school, I don't know how I am going to manage it.

Any advice or information is greatly received!!!:A

Doozergirl

panichousebuyer wrote: »

What is your opinion on putting the house up at a reduced rate as you suggested, if we have had no interest in a couple of months then rent in the catchment area (obviously having to move in to the rented house)? We can afford to do this (only just) for a short term until we have heard about school places. Then move back until the house sells.

Also if you enter into a six monthly tenancy agreement and then give notice after a couple of months do you have to pay any costs or continue paying rent for the agreed term?

I know that two houses, even in the above situation are not the ideal, but we do not have many options. I have to move back into the area so that the children are not split between schools.

Another thing is if the house is valued at around £215,000/£210,000, what would you put the house on the market for to get a quick sale?

Sorry hun, I agree with the idea of trying the market and then renting your house out and renting elsewhere if selling doesn't work for you straight away. the 'two house thing' I referred to, I meant owning two houses. I wasn't specific.

I don't see any harm in letting your house out to rent somewhere that gets your babies into the right school. I would not bridge, nor would I get a BTL mortgage on my house to buy somewhere else.

It's only me posting yet again, so I've told you what I would market for, but if if you are prepared to accept £200,000 then that is definately what I would market for - you will attract those viewers whose maximum budget is £200,000. those search preferences on rightmove make a difference when you need to sell. If £15,000 is what it costs to get me into a similar house in the right area, then I would happily let that go rather than spend £10k a year on school fees.

What you are doing is incredibly honourable. I actually feel guilty having an opinion

BobsySpud

Hi there,

I think something similar has already been suggested but how about a 'Let to Buy' mortgage? This allows you to continue owning your current property on the assumption that you'll let it out and the rental will cover the mortgage. You can then borrow as normal for the new property.

We did this ourselves 3 years ago when we were making the move from Hampshire to Scotland. We found a house we loved up there and because of the different system in Scotland found ourselves in the position of having to commit to buy something before we could sell our house. We too looked at bridging loans and approached a mortgage advisor to help us. It was the mortgage advisor that came up with the 'Let to Buy' solution and it worked brilliantly for us.

We never expected to actually have to let our old house out, and in the end it only took two further months for us to sell the house. So there were 2 months when we were paying for 2 mortgages. However, if we hadn't sold so soon, we still had that option to rent out our house if need be.

Anyway, it worked for us, but not so sure I'd be so keen to use same strategy in todays market. But if you're serious, I'd suggest seeing a mortgage advisor and see what they come up with.

Hope this helps

Bobbie

panichousebuyer

Don't feel guilty, that is what you are here for!!!

You have helped me alot, just think yesterday I would have got a bridging loan, how dumb is that!!!

I didn't even think about the house price and the right move search. Just spoken to my husband and we have decided to put it on at £199,950. That's 20k less than the one opposite, so hopefully it will sell, we just hope that they don't then lower their price. We don't really want to put any more money on our mortgage but would maybe up it by 15k if we had to, needs must and all that.

Anyway going to see a mortgage advisor on Thursday and will be getting the house valued and up for sale on Monday, then it will be just a case of wait and see, keep your fingers crossed for me.

You never know we could be moving in a couple of months........or is that just wishful thinking!!

Doozergirl

panichousebuyer wrote: »

Don't feel guilty, that is what you are here for!!!

You have helped me alot, just think yesterday I would have got a bridging loan, how dumb is that!!!

I didn't even think about the house price and the right move search. Just spoken to my husband and we have decided to put it on at £199,950. That's 20k less that the one opposite, so hopefully it will sell, we just hope that they don't then lower their price. We don't really want to put any more money on our mortgage but would maybe up it by 15k if we had to, needs must and all that.

Anyway going to see a mortgage advisor on Thursday and will be getting the house valued and up for sale on Monday, then it will be just a case of wait and see, keep your fingers crossed for me.

You never know we could be moving in a couple of months........or is that just wishful thinking!!

I will keep fingers and legs crossed for you

Fee fee, whole of market, mortgage broker I hope??

panichousebuyer

Doozergirl wrote: »

I will keep fingers and legs crossed for you

Fee fee, whole of market, mortgage broker I hope??

Sorry, did not understand. You may have noticed already but I am not very bright!!!:o

Doozergirl

LOL! Ok, who are you going to see about your mortgage on Thursday?

The best person to see is a whole of market broker. Lots of brokers are tied to one lender or perhaps a panel of lenders. Rather than walking into NatWest because you bank there, or schlepping up and down the high street, you go to a whole of market broker. That means they have access to almost every single mortgage product out there, including all the ones you can get on the high street. Fee free means that they take their commission from the lender, not directly from you.

They find you the cheapest product for your circumstances. A mortgage is the biggest and most expensive product you buy (often more expensive than the house itself) so it is imperative that you find the cheapest one!

nelly_2

Buying a house to live in a certain school catchment area????

I am so close to the point of doing what micheal ryan did!!!!!

this country has lost the plot entirely

People should be demanding ALL schools are good, not demand to move house to get near a good scholl we arnt in Zimbabwe !!!!!!

I really do disspare