Bridging Costs

bennyboy3

Looking for a bit of info on bridging costs.

My situation is as follows. I live in Scotland (THIS MAY OR MAY NOT BE RELEVANT) and i've sold our house and bought another - both the sale of ours and the purchase of the other house are at present "subject to conclusive missives". However I expect to have reached completion for both the sale and purchase sometime next week.


The problem is that the entry date we have for the house we are moving to is 31/10/05 and the entry date for the people buying of us is 18/11/05. There is therefore a 19 day gap between buying and selling for which i think we will need to obtain a bridging loan.

The figures are as follows

Cost of new house - £252000
less deposit - £32000
less mortgage - £70000
net proceeds of sale - £150000


My understanding is that to fund the purchase i will have to bridge for 150k ie the net proceeds of the sale for the 19 day gap . However i'm not sure how much this will cost. I believe we will be in a closed bridging situation as the missives will be signed before we take the loan.

My solicitor is quoting rates of 9.75% per annum for bridging plus a £75 admin fee with the Royal Bank of Scotland . According to my calculation this will cost us about £800 which to me seems excessive.

Would be grateful if any fellow money savers could advise if i can get cheaper bridging or suggest another way round this problem.

Thanks in advance.

Ian_W

Don't know too much about bridging finance, never needed it, but I looked up my own Banks rates and the GOOD NEWS is LTSB will do a closed bridging loan at Base + 1% = £429 interest for 19 days. :j
BAD NEWS is they want 0.5% arrangement fee = £750 :mad:

Details are HERE.

Suggest you try them and see if they'll negotiate a very much lower arrangement fee, also try your own Bank and maybe your mortgage lender. BoL.