Bridging Loans

[tiggerblue10]

I have seen a property that I like but I haven't yet put my house on the market. I will have quite a large deposit to put down but I'm seriously thinking of using a bridging loan until I can can get my house in order to sell.

Apart from paying a large amount of interest what are the pros and cons of this type of loan Also, if I do get one for 6-18 months can I close it off early once I sell up?

[Tilly2]

Have a look at this Tigger.

https://www.moneysupermarket.com/loans/bridging-loans-guide/

[tiggerblue10]

Ah thanks Tilly, have ready that now.

Will need to think carefully about it as the exit fee will be 1% of loan if paid early.

[-SharonA-]

Many years ago I was lucky enough to secure an interest free bridging loan from my employers. Can they help you???

[ubasses]

The fact that you have not yet put your property on the market will probably exclude you from a bridging loan with any of the mainstream lenders. Open ended loans were never considered good lending and closed were the only ones ever considered. As Tilly's link points out, interest rates would be very high and high charges built in for a closed bridgeover.

[david small]

My nephew was going to raise a bridging loan. Fortunately his dad lent him the money instead. Apart from very high interest costs, the set up fee, the periodic but regular fee to agent etc the insurance. These were crippling and extremely expensive. Look for alternative options if possible. Good luck.

[tiggerblue10]

I'm getting a valuation done on Tuesday.

I've been in touch with a broker, given them my details and they are looking at possible lenders.

Will look into what my employers can offer.