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Legal, pensions and money

Getting a bridging loan.

(33 Posts)
Sago Tue 25-Apr-23 20:12:44

In the early 90’s living 35 miles from London we saw neighbours lose everything they had due to bridging loan.
Please don’t be persuaded.
As GSM said try and sell first.
I hope it works out for you.

Germanshepherdsmum Tue 25-Apr-23 20:03:04

No reputable solicitor would either recommend doing this or a company providing bridging loans. Believe me, if you do this you’re on the road to bankruptcy. You would be paying your existing mortgage and the bridging loan for an unknown period. The market is slow. No property is worth this risk and no reputable solicitor would ever recommend it. Find a buyer then find somewhere to buy.

Wyllow3 Tue 25-Apr-23 19:54:08

The bridging loan company discussed needing proof of worth of my house as collateral.

Wyllow3 Tue 25-Apr-23 19:52:58

Its not good rental material at all - only 2 bedrooms and small downstairs, large beautiful garden needs keeping up, and not really in a rental area - its attraction is that very garden and the fact its detached among semi's. It would also need some work doing it to make it suitable for a rental that a buyer would want to do themselves.

GSM was hoping you would come in. The loan company I spoke to are doing bridging loans to guarantee purchase - we are talking a loan of maybe only just over £100.000 low on the food chain.

So a solicitor wouldn't arrange it, but wouldn't an experienced conveyancing solicitor know who's reputable etc? (its the family solicitor who does wills, POA's and conveyancing specialisms, family stuff.)

Germanshepherdsmum Tue 25-Apr-23 19:49:42

Thanks Sago, saw your post after I posted. Bridging loans are expensive. Being able to jump when you find a desirable property without having sold your own is not their purpose. Their purpose is to be able to complete your purchase a few days ahead of your sale if need be.

Germanshepherdsmum Tue 25-Apr-23 19:40:30

No, you have to do this yourself. Solicitors and estate agents aren’t brokers. Don’t even consider a bridging loan without exchanging contracts on your sale - and you’re unlikely to be granted one until then. They’re not intended to put you in the position of a cash buyer.

Sago Tue 25-Apr-23 19:38:05

Please think very carefully, you could end up paying enormous interest rates.

Estate agents and solicitors do not organise bridging loans.

Why not put your house on the market and wait and see?

Our daughter has a house for sale in a very desirable area, she had people posting cards through the door in 2021 wanting to buy it, 6 months on the market and she has only had 1 viewing.

The market is not good.

Would you consider letting your current property and buying the apartment?
There is a great demand for rentals in many areas.

GermanShepherdsMum may see this thread and give better professional advice.

Wyllow3 Tue 25-Apr-23 19:24:48

I'm a beginner.Just heard of them, and made one preliminary phone call to check out I would be eligible and repayments, as long as it doesn't go on too long, in current market prices would be do-able.

Situation: downsizing from house to flat in retirement block.
Getting valuation on house soon, but it will be well above cost flat. Got very small mortgage left to pay off. Want to be able to "jump" with an offer to secure whats wanted.

My house is marginally in range of first time buyers, will be discussing this with Estate Agent, am willing to cost down to get the right buyer in the circs if I need to make a "jump".

I'd prefer, even tho I'm sure people do very clever DIY stuff, if a solicitor could not only handle matters, but find the bridging loan too.

Can they do that, handle the whole things for you? Make an offer, sort bridging loan, etc, manage these matters? Or will a good estate agent arrange one so's to get your house on their list?