Bridging loans, what to be careful of

A serious thread and some good advice.

About 4 years ago, a bridging loan was something a friend was considering. As I was in Newcastle, I nipped into Virgin on Northumberland Street to make enquiries. I was met with a blank stare from the young woman and man at the desk, so repeated that I was looking for any information on terms and conditions for a bridging loan.

Eventually the young man spoke and said they didn’t do loans for bridges, just for residential properties!

I kid you not!

Thanks for helpful advice, have just got the news that the seller has put the house on the market for a highter price!!
With legal and broker fees+ auction deposit of £13000, we couldn't get the finances together in time so lost deposit, its been an expensive exercise with little to show. Been very stressful. What lessons to learn?

If you have solid equity in your home and second home why cant you just guarantee your sons house purchase.

That aside you both need to be realistic about the sale price of your properties any interest will need to be paid on both properties until cash comes in. If the son's new property needs work, is it liveable in the meantime, are they prepared to move in?
Be very careful, building work can take longer and cost a lot more that most think, do not wear rose coloured spectacles when you look at your sons plans

My daughter and family wanted to move they also chose houses that needed work and wanted help to buy them, I rejected the first 2 they were wrecks needed a lot of work before they moved in. The third needed work but was liveable, they moved in, it took 10 yrs to complete but they made lot of money when they sold it

If you are getting the loan and then giving the money to your son for the purchase, you will have to go through the anti money laundering checks. These involve authentication of your identity, paperwork regarding the funds and their transfer.
You may need to consult a Financial/ legal advisor, if you haven’t already.