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Our house is on the market and had a few viewings over the weekend but no offers, while the viewings were going on we went to Yorkshire and viewed a few houses and viewed our next house hopefully ... it just felt right even with some work it needed, I've spoken to their estate agent and ive said we are willing to give the asking price, subject to selling our house etc , but as we don't have a firm offer on our house or the money to buy the new one, we've thought of a bridging loan to buy the new house while ours is being sold and then clear the bridging loan off , which it will easily
anyone used a bridging loan to do this and any pitfalls or good points ?
Don't unless you can afford to have 2 houses.
Well I for one can't think of anything that might happen in the next few weeks that would make such a course of action seem to be inadvisable.
Yes, but very fortunately with family loan, rather than commercial. Still felt mega stressful when our sale nearly fell through, we only had 2 properties for 6 weeks. Be very careful!
Risky as Col says. I did it and it was fine, a lot of bending over was involved.
My neighbour took one to secure their next property whilst waiting for their buyers to survey etc. Somehow the buyers must have got wind and leveraged the hell out of the situation to negotiate a sizeable discount.
Neighbour got his sale but wasn't happy, guessing it was either too much risk to start again or the bridge was punitive (or both!).
Market is terrible at the moment. So many offers falling through, chains failing. Local sellers near me have had their houses on the market for years. Can make offers but can't sell. Bridging loan for that duration is just not possible.
That's the problem I have. I can make offers but it's a nightmare to sell.
Though people are waiting for the result of Brexit but that could still be a long wait.
Bridging loans are very expensive even short term. Imagine if you can't shift your house?
I wouldn't do it.
Sit tight and wait until you have a solid offer.
There will always be another property to buy if you miss this one.
I wouldn’t without having an offer on your current house. Buying and selling is stressful enough even without bridging loans etc. As for the “perfect” new house, there will be others.
Did it without a bridging loan (buy before selling) and even then that was bad enough
No ****ing way in the current climate.
There will be other good houses up north. You might also be buying just before prices take a nosedive, and selling just after, which is never a good combo.
We've done it. Its stressful and expensive. the thing we wanted was so good that we factored in the cost against the opportunity, and it made sense to do it.
But it was in a very different market, at a very different time. I'd only do it now - in the current market if it was a once in a lifetime opportunity.
We did it. 6 years ago. It wasn't actually a Bridging Loan, we just managed to find a good deal on a second mortgage - with no penalties. It was only for a few weeks. Scotland though. Less hassle with chains etc.