Bridging Loan

R

roker

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I am selling my house and buying another (see my post "Who Holds the House Deposit" under Motgage and Home Buying)

I have asked at several banks locally about a bridging loan and all have said that I must have a mortgage with them.

I am in the nice position that I own my house and will be €30,000 in pocket when I move. I have no other loans, a clear credit history and cannot get a mortgage even if I wanted one, at over 60 years of age.

Any Ideas where to try or what to do.
 
The key to this is really to link the folk that are buying your gaff into a closing date earlier than your one. Their delay in getting e.g. life assurance etc will turn out to be your delay. If you have a contract with them as to their signing date, they are legally bound to close then. You could try and have a clause in your contract tying this in.

In effect, if they are late they pay interest and if you are late, you pay interest to the folk you buy from. If you or your solicitor can demonstrate that you have the other contact, then the folk you are buying from may be open to this.
 
Hi

To be honest, Bank's dont really want to have to provide bridging, full stop. The ones who do, will tend to only do it for existing customers, who are putting their mortgage business with the same bank ... so providing a decent future income stream etc.

Regardless of what you read in the papers, written by various well regarded journalists (I think that that lady in the Sunday Business Post, Aileen (Power ?) recently suggested you should tell a bank to shag off, if they look for arrangement fees) ...the reality of the situation is this is quite often you will have to pay fees if you want bridging.

Take it or leave it I guess ... but as mentioned already, the real way to deal with this is put pressure on the purchasers of your house to complete quicker !

cheers

G>
 
Thanks for the advice, but, I need the bridging to pay the possible 10% deposit when their solicitors asks. So far I have given the estate agent 2.5% deposit in order to progress the sale to the contract stage.

I will not get the money until I move out of my house
 
Then what you do is look for equity release on your existing property from the lender. Your solicitor will give undertaking to account for the proceeds including the extraction. You should make sure that your application includes this angle. Fairly straight forward. Just put a simlar case together.
 
This subject intereste me as we're in the same position. We're putting down €5000 down for booking deposit but then need a further €20000 to meet the 10% for contract signing. We won't have this money until the sale of our house goes through (quickly, please god) so we're wondering what our options are. We have a good €90000 equity in our current house so no issue with money once we've sold.
WizardDr, could you explain how this works, it's probably simple, but I think my stressful job is makin more stupid by the day !!!
Things seem to be moving fast now, so I guess I should have tackled this sooner. We're with PTSB and planning to stick with them for the new mortgage so I wonder if this will help...
 
Any chance you could simply borrow the amount required for the deposit as a personal loan? Then pay it off when the sale goes through? If you get a variable rate loan you could pay it off without penalty after 3 months, 6 months etc. Whether a bank (or tesco) would give you a loan if they knew you were going to do this is another matter.

On a side note, I found out this week that IIB won't do bridging, even if you are getting the mortgage with them. We got bridging no problem with UB, even though neither of us were existing customers.
 
To Unregistered: PTSB will do Bridging (as far as I know) if the new mortgage is with them and the contracts are signed on the house you are selling. I remember looking into this about 2 years ago. They would do it for a maximum of 3 months. We were getting €30,000 and as far as I remember it was costing us about €600 to do us. We didn't go this route in the end because the whole buying and moving thing was going to take about 6 - 7 months. We re-mortgaged the house we were selling for 90% and got out the money that way.

To Roker. Have you tried the personal loan route with your own bank. Can't believe they won't facilitate you given the equity you have. The only other option and probably a last resort for you is to sell your own house first and move in with a relative or friend or even rent for a month or two.
 
Thanks Mrs Dara. I was speaking with PTSB today and they pretty much reinforced what you've said. Thanks for everyones help, this site always has the answers !
 
Another update. Had discussion with PTSB mortgage advisor and it seems they'll only provide a bridging loan on the full purchase prices, not just a lower amount that I specify (i.e. deposit for contracts). Seems a little unnecessary to me, but the other problem is they may decline it due to the repayment amount etc. I'm thinking I should look at other options, including trying to negotiate down the deposit with the seller. Otherwise I can see this whole thing taking longer. I know he's keen to get his (vacant) place sold, so who knows. I guess we'll see what final decision PTSB give me.
Anyone have any other suggestions, I guess the loan is sounding more suitable.
 
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