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sale fallen through - is bridging loan my only option?

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  • Hoploz
    Hoploz Posts: 3,888 Forumite
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    When we lost our buyer at the 11th hour in 2007 we remortgaged our home in order to buy the next one. Our broker suggested we tell our current mortgage co we wanted additional funds for home improvements but we didn't want to lie so we applied for a separate new mortgage (with no early redemption penalties!) and then we paid it off when we sold the house 6 weeks later.
    Another option would be to apply for a buy-to-let mortgage on your current home, keep it while you sort out the new place, buy it, get moved in etc then you'll be able to do as you like with the old house - sell it, or consider let it for a bit.

    Either of these options would give you the breathing space without scary bridging loans. I wonder if you're not finding much info about people using them online because they just aren't used these days. They're a thing of the past.
  • tudorfan22
    tudorfan22 Posts: 436 Forumite
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    thanks Hoploz, I have been half advised to see if my current provider would increase my mortgage and of course it'd be chaper than a bridging loan. but my mortgage advisor wasn't too hopeful of success considering that I would be using the money to effectively leave the country. they may be risk averse to lending on that basis. so...considering what your port suggests, should I apply to my mortgage company but not be super explicit - or even tell a fib - about the reasons for wanting the extra. it sounds dishonest to me and I think theyd smell a rat.
    one thought was to say it was for a place in spain - just not tell them that id be leaving the UK to live there?
    thoughts?
    )

    :beer:
  • letitbe90
    letitbe90 Posts: 345 Forumite
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    I would be weary of the true cost of the bridging loan.

    The cost of it being ~£3,500 is based on

    1) You are able to complete within the next 6 months
    2) You sell for the same price you was about to sell at now

    If either of these change (particulary 2) when feeling like you are against the clock), you may find the true cost a lot more than £3500.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    tudorfan22 wrote: »
    thanks Hoploz, I have been half advised to see if my current provider would increase my mortgage and of course it'd be chaper than a bridging loan. but my mortgage advisor wasn't too hopeful of success considering that I would be using the money to effectively leave the country. they may be risk averse to lending on that basis. so...considering what your port suggests, should I apply to my mortgage company but not be super explicit - or even tell a fib - about the reasons for wanting the extra. it sounds dishonest to me and I think theyd smell a rat.
    one thought was to say it was for a place in spain - just not tell them that id be leaving the UK to live there?
    thoughts?


    Just accept that you need a buyer, and work from there, don`t try it on with the bank, it will probably backfire on you.
  • tudorfan22
    tudorfan22 Posts: 436 Forumite
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    thanks but my buyer wont come along in time for me to complete on the other house. even if I found a buyer today - its getting to be too late unless they could push the sale through in under a few weeks - which is highly unlikely
    )

    :beer:
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    tudorfan22 wrote: »
    thanks but my buyer wont come along in time for me to complete on the other house. even if I found a buyer today - its getting to be too late unless they could push the sale through in under a few weeks - which is highly unlikely


    In that case you are not really in a position to buy the other house.......
  • tudorfan22
    tudorfan22 Posts: 436 Forumite
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    too late - deposits been paid, that's how it works in spain. - hence my question in my OP
    )

    :beer:
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    tudorfan22 wrote: »
    too late - deposits been paid, that's how it works in spain. - hence my question in my OP


    Well looks like some kind of bridging loan then, or lose the deposit?
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