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    Bridging Loans

    Has anyone had to use one?

    What charges are involved and what is the process?

    Thanks

    7 Comments

    i assume you are buying a house before selling your current one ?

    Original Poster

    Jimston;8803756

    i assume you are buying a house before selling your current one ?



    Nope, selling 1 house (not currently lived in), needing the money out of it to put down on another house we are buying.
    Looks like there might be a delay though, so people have suggested a bridging loan but have heard negative stories about using one.

    bridging loans obviously carry some risk in that if your sale falls thru you have already bought the other house and if you need to then extend or keep the bridging loan longer term it can get very expensive. fees will depend on how long you want the loan for and what value it is for. usually there is a one of fee at the start (used to be £500 and upwards where i worked) then they charge you interest on the money borrowed each month. so if you are bridging say 200k at 4% it would cost you approx £150 a week ontop of your current mortgages (figures are totally random just to give you an idea). the bank will agree a bridge for say 3 months then at the end of that you have to reapply or extend, as long as you have the money to afford the payments each month its not too bad but selling houses at the mo can take a long time so bridging loans are more risky.
    hope this helps.

    Original Poster

    Jimston;8804015

    bridging loans obviously carry some risk in that if your sale falls thru … bridging loans obviously carry some risk in that if your sale falls thru you have already bought the other house and if you need to then extend or keep the bridging loan longer term it can get very expensive. fees will depend on how long you want the loan for and what value it is for. usually there is a one of fee at the start (used to be £500 and upwards where i worked) then they charge you interest on the money borrowed each month. so if you are bridging say 200k at 4% it would cost you approx £150 a week ontop of your current mortgages (figures are totally random just to give you an idea). the bank will agree a bridge for say 3 months then at the end of that you have to reapply or extend, as long as you have the money to afford the payments each month its not too bad but selling houses at the mo can take a long time so bridging loans are more risky.hope this helps.




    Thanks for the info.

    Obviously were are talking worst case scenario if our 'spare' house doesnt complete before our new one does.

    We don't really want to take out a bridging loan but it's something we might have to consider if things don't go to plan.

    Banned

    Smithy, its threads like these, and your current plans for marriage that always remind me of this beautiful little ditty.

    youtube.com/wat…VFk

    Original Poster

    vibeone;8804113

    Smithy, its threads like these, and your current plans for marriage that … Smithy, its threads like these, and your current plans for marriage that always remind me of this beautiful little ditty.http://www.youtube.com/watch?v=O3bNPAYoVFk



    can't view at work .........

    Banned

    smithyp1;8804133

    can't view at work .........



    You wanna get me as your network administrator then. People here get access to all kinda of filth.

    Little treat for later anyway.
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