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bridging loans?

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ginasmg
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2007/06/14 13:41:12 (permalink)
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bridging loans?

has anybody ever taken out a bridging loan? if so how did it work,and how did it fare with regard to interest etc?did you find this usefull/worthwhile.
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    theiopener
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    RE: bridging loans? 2007/06/14 13:41:45 (permalink)
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    do you mean a consolidation loan?
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    ginasmg
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    RE: bridging loans? 2007/06/14 13:47:04 (permalink)
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    tbh im not quite sure,its a loan on for buying a house doing it up and selling it,apparently there is a thing called a bridging loan,they will lend you money for 2 to 6 months against the property you own.
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    theiopener
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    RE: bridging loans? 2007/06/14 13:49:10 (permalink)
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    AKA a second mortgage or remortgage. My mom has one she took out to do up her house with, theyre ok but youll have to pay 2 mortgage payments every month vs 1
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    ginasmg
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    RE: bridging loans? 2007/06/14 13:50:32 (permalink)
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    thats right i think but its only for a VERY short period.
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    theiopener
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    RE: bridging loans? 2007/06/14 14:11:55 (permalink)
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    it will be forever long you want it and can afford to pay it back in. If you borrow 10k and cant pay it back in 6 months it will be longer. On the whole they have their uses
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    ginasmg
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    RE: bridging loans? 2007/06/14 14:23:18 (permalink)
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    thanks for the info mate
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    bertie
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    RE: bridging loans? 2007/06/14 14:36:10 (permalink)
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    ^^^ I don't quite agree with the above

    Bridging loans are short term loans available to people moving house. If you have been accepted for a new mortgage and have exchanged on your old home, you can get a "closed bridge". If you have yet to put your home on the market you can get an open bridge loan.

    Really these are constructs used in a tapering market, where there are problems with selling your home, but have found the perfect new place.

    It's a funny thing to suggest - who has told you about these? They are very expensive options - really a last chance option.
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    cleg
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    RE: bridging loans? 2007/06/14 14:46:52 (permalink)
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    I looked into bridging loans when I was thinking about buying from an auction.They're good in as much as you can get big money sharpish but as Bertie says they're effing expensive.The cheapest company I spoke with wanted 1 percent a month interest.
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    bertie
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    RE: bridging loans? 2007/06/14 14:48:50 (permalink)
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    ORIGINAL: cleg

    I looked into bridging loans when I was thinking about buying from an auction.They're good in as much as you can get big money sharpish but as Bertie says they're effing expensive.The cheapest company I spoke with wanted 1 percent a month interest.


    yup, plus the 1.5ish percent arrangement fee.

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    ginasmg
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    RE: bridging loans? 2007/06/14 14:49:11 (permalink)
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    i found them on the net im just looking for the best way to purchase a property i can do up and sell BUT without having to sell the house i live in now,i feel i can do something with a secured loan of a type(not sure which one yet) on the home we nearly own.
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    bertie
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    RE: bridging loans? 2007/06/14 14:55:36 (permalink)
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    Unusual Gina, but might work. The norm is that the lender wants to see the mortgage agreement for the new place.

    Sound s like a re-mortgage might be the option if you can afford it. Be very careful - the days of easy money in property are over. Make sure you know you can turn a profit comparable to your risk and effort.

    Have you looked at interest only mortgaging - usually we use those to maximise buying power if only holding for a short time.
    #12
    ginasmg
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    RE: bridging loans? 2007/06/14 15:02:06 (permalink)
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    no i havent looked at interest only mortgages yet but i will now,i always thought that if you had a house worth such and such and very little mortgage left on it,then it would be easy to use the house as colateral for a loan,but it seems those days are gone at the moment unless im missing something.
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    ginasmg
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    RE: bridging loans? 2007/06/14 15:04:34 (permalink)
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    ORIGINAL: cleg

    I looked into bridging loans when I was thinking about buying from an auction.They're good in as much as you can get big money sharpish but as Bertie says they're effing expensive.The cheapest company I spoke with wanted 1 percent a month interest.
    did you find something else mate?as we are laso thinking of buying a house at an auction.
    post edited by ginasmg - 2007/06/14 15:05:31
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    TRAMP
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    RE: bridging loans? 2007/06/14 15:09:49 (permalink)
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    Gina, I looked into this about 2 years ago.

    I phoned my bank and they said the lending manager would call me back, he did but only to see what I'd say LOL

    He said that he didn't realise that people were still exploring this route with houses at the cost they are now and theat he hadn't dealt with one in over 5 years.

    I can't remember the exact figure but the amount we'd repay on the loan as well as paying our current mortgage would have crippled us...well it just wasn't even an option tbh.




    It's finally arrived....PM Neb for swaps!


    #15
    ginasmg
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    RE: bridging loans? 2007/06/14 15:13:44 (permalink)
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    thanks neb,ill have a look into other things but so far almost everything seems so expensive because i only want it over a short period ie 3 to 6 months,theres got to be a way of doing this when we are sitting on assets worth an amount.
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    TRAMP
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    RE: bridging loans? 2007/06/14 15:25:13 (permalink)
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    What if you don't sell in that time though

    It's finally arrived....PM Neb for swaps!


    #17
    ginasmg
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    RE: bridging loans? 2007/06/14 15:29:55 (permalink)
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    i dont intend to sell mate,just try to get a loan with the assets,but unsure if i can do this kind of put the house up as security for a loan.
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    TRAMP
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    RE: bridging loans? 2007/06/14 15:31:43 (permalink)
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    Oh I thought you wanted to borrow to buy a house and do it up, then flog it? or have I miss read the whole thread LOL

    It's finally arrived....PM Neb for swaps!


    #19
    ginasmg
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    RE: bridging loans? 2007/06/14 15:35:47 (permalink)
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    yes mate your right,i want to borrow money short term in order to buy another property and do that up and flog it,but i can only use the house i live in as collateral as i cant get a lone from a bank because im a carer.
    #20
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