Bridging Loan + Mortgage

C

Chuffed

Guest
Hi guys,

I have an urgent question.
I have received my approved bridging loan today - that I am to use to clear the mortgage of my current house plus the equity I need for completing the purchase of my new home.
I had a previous mortgage approval for the rest of the amount I need for the new house. The only clause in this mortgage is to have the previous mortgage redeemed (which I will have with the bridging loan).

You are allowed to have a bridging loan + a mortgage at the same time, right?
They have not been very clear on this when asking at the branch and I am a bit panicky now!
 
Chuffed said:
You are allowed to have a bridging loan + a mortgage at the same time, right?
Click to expand...
Do you mean will the lender of the new mortgage be OK with you having this bridging loan while drawing down the mortgage even if your debt situation was different when you applied and got approval? If so then as long as you can service all of the debts while both loans are outstanding I can't see what the problem is. Or maybe your question is different than the one I'm answering?
 
The lender of the bridging and the mortgage is the same. I am just wondering if the bridging was approved taking into account that we need the mortgage as well.
 
Seems odd if they didn't spot this issue already? Although perhaps it's simply different departments or something? If you are sure that you can manage the two debts then perhaps you are OK? Have you asked your solicitor in case s/he might know? Otherwise you might want to come clean and ask the lender if it's all OK?
 
In our case, as is typical, the reason for getting a bridging loan was to enable us to go ahead with the purchase of our new house, before we had sold our current house. This was clear when approving the bridging loan, so the lender was welll aware that we would have 3 loans on the go - old mortgage, new mortgage and bridging loan, for 2 months.
 
Chuffed said:
The lender of the bridging and the mortgage is the same. I am just wondering if the bridging was approved taking into account that we need the mortgage as well.
Click to expand...
Believe me, the lender *will* know that they're lending you the bridging and the new mortgage amount - they'll have checked your customer file. Basically the bridging will be secured on your old home, and the new mortgage on your new home, and they've probably had you provide all sorts of insurance documents (unless your home insurance was already with them in which case they'll have asserted their interest anyway). Don't worry about a thing - the lender knows what you're doing and what they're doing, and I'm only surprised they haven't made it clearer to you themselves!
 
Guys, I spoke to the bank today, they told me that the nature of the bridging is to be used with a mortg. I knew that, but just didnt understand how they kept confussing me saying it would all be included in just one loan.

Thanks a lot though!
 
You must log in or register to reply here.
Back
Top