How can I get a "bridging" loan for 65K

stobear

Frequent Poster
Messages
521
Hi
Without going into all the details I would be looking for some guidance.

In summary, my elderly mother wants to move closer to me. She has a house valued at 420K, she wants to purchase a house for 285K. The developer is releasing a small number of houses in March, she loves the house we found for her in this development. The developer will only sell these houses to non first time buyers and they have to be cash buyers (ie not in a chain). I am close to this criteria, between my mam and myself there is 220K cash but I cannot get clear information on a loan for the balance. My current mortgage is 80K with AIB and they refused me (their loans don't go beyond 50K, cannot remortgage as there is not 'improvement or changes to my exisiting home). MY bank (UB) will only go to 40K). IN essence its a bridging loan ( I know the term in banned :)) but I will be paying it back when Mams house is sold.

Any ideas on next options? My next guess would be the developer allow me to 'owe' him the balance if he sees 220K in cash up front.

Thanks
 

RedOnion

Frequent Poster
Messages
3,047
65k is above the unsecured loan level for most banks, with the exception of maybe BoI. However, you would pay unsecured personal loan rate.
Your other option is switch your mortgage to another bank, with an equity release. The mad thing is you'll be able to do this with EBS, although AIB won't let you (and get cash back in the process).
There was a poster a few months ago in a similar situation who switched to Pepper, and once they had the amount they needed, switched back to AIB again!
 

Editiono

Frequent Poster
Messages
86
Hi
Without going into all the details I would be looking for some guidance.

In summary, my elderly mother wants to move closer to me. She has a house valued at 420K, she wants to purchase a house for 285K. The developer is releasing a small number of houses in March, she loves the house we found for her in this development. The developer will only sell these houses to non first time buyers and they have to be cash buyers (ie not in a chain). I am close to this criteria, between my mam and myself there is 220K cash but I cannot get clear information on a loan for the balance. My current mortgage is 80K with AIB and they refused me (their loans don't go beyond 50K, cannot remortgage as there is not 'improvement or changes to my exisiting home). MY bank (UB) will only go to 40K). IN essence its a bridging loan ( I know the term in banned :)) but I will be paying it back when Mams house is sold.

Any ideas on next options? My next guess would be the developer allow me to 'owe' him the balance if he sees 220K in cash up front.

Thanks
@stobear - Ask the builder will be accept a much lower deposit and when house is sold you will pay the rest or when the close of the purchase of the new house happens. I know someone who has just agreed a significant lower deposit with a developer...worth a try!
 

stobear

Frequent Poster
Messages
521
Thanks folks. Im will have to look at the switch option (I don't understand it) to see whats involved.

@Editiono , not sure I understand how the the lower deposit scenario would work. Lets say the normal deposit is 10% (28k). I can pay this now. If I get a lower deposit (say 10K), how would that help. I am more than sure Mams house will sell but probably a few months after the purchase of the new one.
 

tallpaul

Frequent Poster
Messages
1,039
I'm more interested in the developer selling to non-first time, cash only buyers!!! How are they policing that??
 

stobear

Frequent Poster
Messages
521
I am not sure apart from people telling the estate agent they fit the criteria. When I spoke to the estate agents this is what they told me, but that may be a smoke screen to put certain types of buyers off.
 
Top