Bridging Loan advice
Discussion
The chain has just broken on our sale at the bottom of the chain, we all still want to proceed but the seller bellow me needs a new buyer.
The house above me are desperate to move, the purchase price what we were paying was £600,000, they have now offered me the house for £520,000 on the condition I get a bridging loan. Great saving for me but the risk now is all mine, I have a £350,000 cash deposit so looking at a loan for £250,000.
Anyone got any advise, I guess I could drop my house by £50,000 and still be better off, if it sells. I priced my property at a price it would sell for when I marketed it which was much less that the estate agents advised.
I guess this might be quite a rare exception?
The house above me are desperate to move, the purchase price what we were paying was £600,000, they have now offered me the house for £520,000 on the condition I get a bridging loan. Great saving for me but the risk now is all mine, I have a £350,000 cash deposit so looking at a loan for £250,000.
Anyone got any advise, I guess I could drop my house by £50,000 and still be better off, if it sells. I priced my property at a price it would sell for when I marketed it which was much less that the estate agents advised.
I guess this might be quite a rare exception?
Edited by Lancerevo on Sunday 11th October 17:37
rare maybe, happens
A drop of 80K is quite a level of "desperate to sell " would make me itchy
I was turned down on a better offer on my bid on a place for 605K ( mine a cash offer ) 9 months ago . They ended up stuffed when the better offer fell thru and I could have stolen for 530K ....but the whole fall thing put me off terribly. I'll never know. ended up buying a dream build plot that came on the day I was turned down
Personally I wouldn't lower your price if you and agent feel well priced
A drop of 80K is quite a level of "desperate to sell " would make me itchy
I was turned down on a better offer on my bid on a place for 605K ( mine a cash offer ) 9 months ago . They ended up stuffed when the better offer fell thru and I could have stolen for 530K ....but the whole fall thing put me off terribly. I'll never know. ended up buying a dream build plot that came on the day I was turned down
Personally I wouldn't lower your price if you and agent feel well priced
What’s your plan if you need the money longer than planned, many loans have a max 12 month period.
I took out a bridging loan to buy our current home, ended up borrowing £550k for a total of 5 1/2 weeks.
With all the fees, surveys, and 2 full months interest payments, the total cost was around £19k (monthly interest was £4380).
In my case, it allowed me to buy off mkt, and sell my own home for just above asking, so worked out ok.
They can be a good tool, but I would test the worse case scenario, your house fails to sell, next 12 months.
I took out a bridging loan to buy our current home, ended up borrowing £550k for a total of 5 1/2 weeks.
With all the fees, surveys, and 2 full months interest payments, the total cost was around £19k (monthly interest was £4380).
In my case, it allowed me to buy off mkt, and sell my own home for just above asking, so worked out ok.
They can be a good tool, but I would test the worse case scenario, your house fails to sell, next 12 months.
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