Bridging Loans?

Discussion in 'Motorhome Chat' started by Yorick, May 26, 2016.

  1. Yorick

    Yorick Funster

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    We're currently buying a property here in Lanzarote and the seller is allowing us a few months extra to fund the purchase. We have 2/3rds already and selling a property in UK to raise the balance.

    We're sure it will sell OK, but want to plan for any problems. If there's a delay we need a short term fix.
    But we have no earnings income.

    I've been reading about bridging loans. Seem to be about 1% per month. Don't mind paying, to avoid losing our deposit.

    Or are there other alternatives?
     
  2. DavidG58

    DavidG58 Funster

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    Go for any alternative you can find, looked into one last month for similar to you, quoted 1.5% / month plus about £4K in fees, cant repay anything until end of agreed term in my case 9 months, but if not able to complete then (house not sold) interest goes to 3% / month.

    I was quoted even worse terms that those elsewhere

    Might as well go to Wonga (y)
     
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  3. Johns_Cross_Motorhomes

    Johns_Cross_Motorhomes Trader - Motorhome & Accessory Sales

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    Banks dont want to know even if you have mega mega security, there are people doing bridging loans allegedly at 1% per month but I would be very carefull and read the small print very thoroughly as they can be very expensive

    Peter
     
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  4. Forestboy

    Forestboy Funster Life Member

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    Bridging can quickly get expensive if the property doesn't sell.
    We were in a similar position 3 years ago looked at bridging loan but decided against it. Instead we managed to get a 12 month interest only mortgage luckily we only paid 1 month before the property sold but it gave us 12 months to sell at a known fixed cost before having to renegotiate.
    Might be worth looking at(y)
    Good luck.
     
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  5. maison

    maison Funster

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    May well prove difficult.

    Been a customer of HSBC for many years with excellent credit rating. When moving house last year I was told "Sorry Sir, we don't do them anymore".

    End of discussion!
     
  6. Concord Pilot

    Concord Pilot Funster

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    The simple answer is don't take a Bridging Loan ! The reason that the seller is happy to give you more time is because there isn't a que of other prospective buyers in front of you to buy the property. Fate is a funny thing - if you are meant to have the property - you will have it. My pound will be on the seller agreeing to wait until you have all of the money !! Cheers Rob
     
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  7. Johns_Cross_Motorhomes

    Johns_Cross_Motorhomes Trader - Motorhome & Accessory Sales

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    You could always get the seller to take a charge on the property in the form of a short term mortage. after all you will be paying a substantial part of the purchase price 2/3d's

    Peter
     
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  8. gus-lopez

    gus-lopez Funster

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    4k in"fees" . that's the **ss take.:(
     
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  9. Milliemobile

    Milliemobile Funster

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    Depending on how much you need out of the property in UK.
    There are those companies that buy at less than market value think they give 75%.
    Which is a big hit, but as there are no estate agent fees and they pay your legal fees, cash in 7 days. It could be worth doing.
    Not used myself and would depend on the figures working for you.

    Lin :)
     
  10. pappajohn

    pappajohn Funster Life Member

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    Shysters and con artists....

    They only buy your house if they have someone on their books looking for that type of property and in the correct area.
    Glorified estate agents but in reverse....they dont have houses to sell....only clients looking to buy.
     
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  11. Milliemobile

    Milliemobile Funster

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    Duno never used them, sounds same as the companies that buy MH for knock down price, if you need the money and can take the hit can't see why it's a con. Wouldn't take long to find out as some guarantee cash in 7 days.
    I believe a lot of them are utilised by people who have inherited property and don't want to waste time with viewings etc.

    Lin :)
     
  12. gus-lopez

    gus-lopez Funster

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    Remortgage on the one that is for sale ?
     
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  13. pappajohn

    pappajohn Funster Life Member

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    Yorick states they have no earnings income.
    I know of no morgage company willing to lend to someone with no income.
     
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  14. Charlie

    Charlie Funster

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    Agree completely sept my description of those clowns would have been far worse !!!
     
  15. Charlie

    Charlie Funster

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    Any relatives with a few quid that are getting little or no interest on savings ?
     
  16. Yorick

    Yorick Funster

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    Not 200 big ones ;)
     
    Last edited: May 26, 2016
  17. Charlie

    Charlie Funster

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    Mmmm 200 is quite a big bridge...

    All I can do is wish you the very best with it !
     
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  18. Abacist

    Abacist Funster

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    Banks are no longer as trustworthy as they once were!

    There are plenty of business owners who can tell you about their businesses being pushed under so the bank could seize the freehold assets securing their loan!

    Be very careful! If there is the remote chance it could go wrong it probably will! The banks can afford to use the best legal brains to tie the terms up into unintelligible legal speak, so long, that you lose the will to live trying to read and understand it.

    How many copies of their terms and conditions do you get every year and how small is the print and how long are they!
     
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