Bridging finance: who provides it and what are the best rates?

[Binomial]

An elderly friend of mine who has no mortgage on his property worth €150k wants to buy a new house for €200k. He will finance the difference from savings.

For many reasons he wants to buy the new house and move in immediately. He has put his old house on the market but the EA has told him it might take several months (6-10) to shift the property.

I have read Aileen Power's article [broken link removed] about the headaches associated with Bridging Finance. But can anyone tell me what institutions offer interest free bridging finance and what are the best rates at present?

Is the Credit Union an option for him given the reluctance of the main financial institutions to encourage bridging finance.

BiN

 

[podgerodge]

Hi Binomial

It is possible to get a major institution to offer Open Bridging. I secured it by going through a local mortgage broker. I don't know what the position is with an elderly person getting it though. For your information the open bridging rate I was quoted was over 6%

 

[Bambo]

I have just secured bridging finance very easily with my credit union and i dont have a lot of savings. In fact I dont even have my full mortgage approval yet!

 

[bobk]

Bridging finance is difficult to arrange as it depends entirely on affordability. If your friend can afford a mortgage of 350k then it shouldn't be a problem, otherwise he'll be lucky to get it.

Interest free bridging does not exist but it is possible to get it at homeloan rates

I do not know about credit unions

He might want to think about setting up the property he plans to sell as an investment property that he is going to rent out. This could help him get it approved if he's having difficulty

 

[Binomial]

If your friend can afford a mortgage of 350k then it shouldn't be a problem, otherwise he'll be lucky to get it.

My friend is an elderly pensioner and does not (and will not) have a mortgage.

Interest free bridging does not exist but it is possible to get it at homeloan rates.

My friend is interested in an 'interest only' loan not an 'interest free' loan.

He might want to think about setting up the property he plans to sell as an investment property that he is going to rent out. This could help him get it approved if he's having difficulty

As stated above my friend has no intention of getting a mortgage not to mention becoming a property investor!


So the question remains..where can the best deal for bridging finance be got?

Thanks
BiN