Is a bridging loan the best way forward?

[softtop]

What is the best way to get the cash?

I know the collective on here is one that has probably been through this before. I am thinking about buying a house at an auction and need about £200,000 to pay the final bill once the deposit has been paid on the day. I have a calender month in which to pay.

I have not sold my current house so will need to get it on the market quick and get back into a cash positive position again.

I was thinking of getting the maximum mortgage I can on this one and then the rest staying on some type of bridging loan. Since it takes six weeks for a mortgage loan to come through I will need all the money straight away and then pay, say £100,000 off in six weeks leaving the rest on a loan of some sort until the house is sold, hopefully within three months.

Option please

thanks
S

[vescaegg]

Are bridging loans ever the best way forward?

They are expensive and risky. Is this a last resort?

[softtop]

vescaegg said:

Are bridging loans ever the best way forward?

They are expensive and risky. Is this a last resort?

if there are other options then I would be interested to find out. If you ask family then I know there are none that have large chunks of cash not in some form of 'tied up' financial wrapper.

[Sarnie]

softtop said:

What is the best way to get the cash?

I know the collective on here is one that has probably been through this before. I am thinking about buying a house at an auction and need about £200,000 to pay the final bill once the deposit has been paid on the day. I have a calender month in which to pay.

I have not sold my current house so will need to get it on the market quick and get back into a cash positive position again.

I was thinking of getting the maximum mortgage I can on this one and then the rest staying on some type of bridging loan. Since it takes six weeks for a mortgage loan to come through I will need all the money straight away and then pay, say £100,000 off in six weeks leaving the rest on a loan of some sort until the house is sold, hopefully within three months.

Option please

thanks
S

How much is your house worth?
How much is the property at auction expected to be?

[kiethton]

United Trust Bank specialise in this, although introductions are typically through brokers. May be an option should you decide to consider this further.

(I don't work for them but had an interview there earlier this week)

[softtop]

Sarnie said:

softtop said:

What is the best way to get the cash?

I know the collective on here is one that has probably been through this before. I am thinking about buying a house at an auction and need about £200,000 to pay the final bill once the deposit has been paid on the day. I have a calender month in which to pay.

I have not sold my current house so will need to get it on the market quick and get back into a cash positive position again.

I was thinking of getting the maximum mortgage I can on this one and then the rest staying on some type of bridging loan. Since it takes six weeks for a mortgage loan to come through I will need all the money straight away and then pay, say £100,000 off in six weeks leaving the rest on a loan of some sort until the house is sold, hopefully within three months.

Option please

thanks
S

How much is your house worth? assume 550
How much is the property at auction expected to be? 230

my issue is less around being able to raise the cash through remortgaging, rather the interim from mortgage application to payment being longer than the auction process.

[Sarnie]

softtop said:

my issue is less around being able to raise the cash through remortgaging, rather the interim from mortgage application to payment being longer than the auction process.

Says who?? I submitted a mortgage application on Monday night that was offered today....

[northwest monkey]

softtop said:

hopefully within three months.

And if it doesn't - then what?

[Grandad Gaz]

Before I make an appointment with the bank, and to give me an idea of its' feasibility, can someone tell me what sort of interest rate I can expect on a 6-12 month bridging loan of about £325k?

House prices are rising at the moment, so less risky....I think!

Thanks

[JQ]

Grandad Gaz said:

Before I make an appointment with the bank, and to give me an idea of its' feasibility, can someone tell me what sort of interest rate I can expect on a 6-12 month bridging loan of about £325k?

House prices are rising at the moment, so less risky....I think!

Thanks

Sarnie will be along to give you an accurate number, but I'd have a stab at 12-15%

[Sarnie]

JQ said:

Sarnie will be along to give you an accurate number, but I'd have a stab at 12-15%

Bridging Loans aren't my forte but I'd be expecting figures of 1-2% monthly dependent on the circumstances...it's a very expensive way of doing things....

[Grandad Gaz]

Sarnie said:

JQ said:

Sarnie will be along to give you an accurate number, but I'd have a stab at 12-15%

Bridging Loans aren't my forte but I'd be expecting figures of 1-2% monthly dependent on the circumstances...it's a very expensive way of doing things....

Many thanks,

That works out at about £40k. Wow, think I'll give that a miss then!