bridging?

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mpob

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We have an offer on house and own house on market. Cash offer has come in on house we want. We currently have no mortgage on our property and differential is about 110k (inc Stamp duty) on new property. Is there anything that can be done to access funds to put cash offer down??
 
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mpob said:
We have an offer on house and own house on market. Cash offer has come in on house we want. We currently have no mortgage on our property and differential is about 110k (inc Stamp duty) on new property. Is there anything that can be done to access funds to put cash offer down??
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It depends on the value of your current home, but you should be able to get bridging finance assuming you have a halfway decent credit history. Note that with many institutions there may be an arrangement fee. What you need to ask for is "open ended bridging", i.e. while the providing bank has a charge on your house, the bridging is not phrased as being contingent on the sale of your house.

The alternative would be, I suppose, to seek a personal loan which can be secured on the house, but the rates for that will be much higher.

BoI's current trade up mortgage offer has provision for bridging as part of a financial bundle, but their tracker mortgage rates aren't the best on the market, so you'd have to make a call on whether the rate difference is worth it to you to be in a cash-buyer position.

Talk to your bank, anyway, and see what they say, but bridging or personal loans are a useful route (IMO) only if you can be reasonably confident of achieving a sale on your current home in a fairly short timeframe - three to four months to closing - or are certain that you can pay on both without serious financial hardship for a significant period.
 
Hi all quick question in regards bridging. On a bridging loan of 6 mths on interest rate of 6.5%, what is the interest due at end of loan
 
Husssy said:
Hi all quick question in regards bridging. On a bridging loan of 6 mths on interest rate of 6.5%, what is the interest due at end of loan
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That's quite expensive bridging though - you should be able to get it for somewhere around homeloan rates. Or maybe I just got a spectacularly good deal?
 
I was quoted this by PTSB where i have my current mortgage. What rate and with whom did you go with dreamerb(if you wouldnt mind)
 
Bank of Ireland, who gave me 4.5% or thereabouts. I'm not sure that they'll provide bridging if you're not also taking out a mortgage with them - but it is definitely worth shopping around for bridging rates if you can.

Does the PTSB bridging have an arrangement fee? If not, it may not be so bad: I know some institutions charge arrangement fees on such short term loans (we weren't so charged, but that was because it was waived).
 
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