bridging loan, equity release or other?

[GT4P]

Question what is the best and cheapest way to release £300k (65%ltv)for a second property with a view to sell current property in 6 months time? A let to buy is not a viable option above £220K.

[Sarnie]

GT4P said:

Question what is the best and cheapest way to release £300k (65%ltv)for a second property with a view to sell current property in 6 months time? A let to buy is not a viable option above £220K.

Remortgage your own property to raise the funds......

[GT4P]

Sarnie said:

Remortgage your own property to raise the funds......

Due to low income unable to get anywhere near that amount hence the LTB option which gives £220k with 2% ERC

[Sarnie]

To get more specific advice, you need to provide more specific information about your circumstances and requirements........

[p1stonhead]

GT4P said:

Sarnie said:

Remortgage your own property to raise the funds......

Due to low income unable to get anywhere near that amount hence the LTB option which gives £220k with 2% ERC

Won’t a bridging loan require similar income to that which a mortgage would to release equity?

Do you have a guaranteed sale in 6 months max? Bridging loans are seriously expensive.

[GT4P]

Sarnie said:

To get more specific advice, you need to provide more specific information about your circumstances and requirements........

basically want to buy a second property to relocate to without the hassle of being dependant on sale of current property to fund new purchase effectively cash buyers but are looking to sell current property which is worth a similar amount with no mortgage in next 6 months, we are looking to borrow 65%ltv on new property or current property but looking to repay debt on sale of current home, LTB was an option but cannot raise full amount without a second residential mortgage for shortfall (double costs etc) hence is there a cheaper alternative?

[p1stonhead]

GT4P said:

Sarnie said:

To get more specific advice, you need to provide more specific information about your circumstances and requirements........

basically want to buy a second property to relocate to without the hassle of being dependant on sale of current property to fund new purchase effectively cash buyers but are looking to sell current property which is worth a similar amount with no mortgage in next 6 months, we are looking to borrow 65%ltv on new property or current property but looking to repay debt on sale of current home, LTB was an option but cannot raise full amount without a second residential mortgage for shortfall (double costs etc) hence is there a cheaper alternative?

Sell first. The hassle is just as much trying not to....

And potentially a lot more expensive.

[GT4P]

p1stonhead said:

Sell first. The hassle is just as much trying not to....

And potentially a lot more expensive.

That would be good but we think we have found something now and need to act fast to secure purchase but don't want to relocate until early 2020, jobs etc.
Yes I know I should wait until we sell but the ideal property doesn't always come along at the right time

[Wilmslowboy]

Worth asking, could cost £30k+

https://www.crowdproperty.com/borrowers

[GT4P]

Wilmslowboy said:

Worth asking, could cost £30k+

[Stella Tortoise]

I don't see how LTB was an option really as you had no intention of letting as you plan to sell.

[Wilmslowboy]

GT4P said:

Wilmslowboy said:

Worth asking, could cost £30k+

6 months becomes, drags on and becomes 12 month...at 8% (APR) plus fees (on £300k)
(8% is cheap for a Bridging loan, normally 12% plus fees)

[Sarnie]

GT4P said:

LTB was an option but cannot raise full amount without a second residential mortgage for shortfall (double costs etc)

^^Do this and just choose a product with no fees or ERC's on the Residential........you won't be a "cash buyer" but you have the same benefit in that you do not need to sell to buy the property.............

[GT4P]

Sarnie said:

GT4P said:

LTB was an option but cannot raise full amount without a second residential mortgage for shortfall (double costs etc)

^^Do this and just choose a product with no fees or ERC's on the Residential........you won't be a "cash buyer" but you have the same benefit in that you do not need to sell to buy the property.............

Thanks this does seem the cheapest option or unless I can borrow from family to make up shortfall, the bridging loan option is just madness with a 2% fee before you even start adding interest at circa 1% per month

[Sarnie]

GT4P said:

Thanks this does seem the cheapest option or unless I can borrow from family to make up shortfall, the bridging loan option is just madness with a 2% fee before you even start adding interest at circa 1% per month

How much will your current property rent for?

Is your annual income over £25k?

[GT4P]

Sarnie said:

How much will your current property rent for?

Is your annual income over £25k?

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