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Bridging loan gone wrong

5 replies

chicadelmonton · 24/02/2022 18:32

Our bridging loan which we took out 12 months ago was due to be paid back at the start of January. The due date came round, we had the money ready to go in our account. The solicitor we were going to use (who did the conveyancing for the sale 12 months prior) was suddenly not available and we had to look for a new lawyer. In the meantime, we had a house fire that has taken out several of the rooms. Very unfortunate (although we are all ok thankfully). So now there is an insurance claim going though, which has all been fine, but it is not quite settled yet how much of the planned works come under the policy and what is betterment. This hasn't been settled yet. We need to extend the bridging loan for a month so that we can resolve these issues and get a new lawyer, but to do this the bridging loan company want to be noted on the insurance claim. The insurer is blindsided by this as a concept, say they've never been asked such a thing before. Both parties (claims broker and bridging loan contact) have gone on leave till Tuesday, but the bridging loan lady wrote us an email saying if she doesn't have these things by the 5th, she will foreclose (or notify intent).

I think our new lawyer will be ready in time, but if not, what is going to happen? Does anyone know what they mean?

Really quite stressed...

OP posts:
FAQs · 24/02/2022 18:37

But you have the money to pay the bridging loan? Are they going to honour the current interest rate if they extend it. It could be cheaper to separate the two matters. Although not ideal, can you live in the house?

DollyPartBaked · 24/02/2022 18:39

Try to get in contact with another person at the insurers and explain to the Lender / lender's solicitor and copy them into correspondence with the insurers

chicadelmonton · 24/02/2022 19:11

Thanks. We have the money to pay the bridging loan, but it has to be paid via a lawyer for due diligence to comply with money laundering regulations. They were ok to honour the interest rate, but have now hiked it up 6k per month because we have't supplied the information on them being noted on the insurance claim. Plus if we don't provide it, they will foreclose next month.

Dolly, my claims guy is away till Tuesday, but I have today got in touch with his boss and he will get back to me tomorrow. The loan lady sent me that email and when I called two minutes after receiving it, she had left to go on holiday! I am speaking with her boss tomorrow.

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DollyPartBaked · 24/02/2022 21:10

They won't rush to do anything for the sake of a few days that it will take you to sort it out - honestly it's not in their interest. Just get in touch with them and keep communicating what you are doing / trying to do. Enforcing is a big step so they will be keen to avoid doing this. Good luck!

chicadelmonton · 25/02/2022 11:55

Now the lawyer has agreed to endorse us but wants us to transfer the funds straight to the loan company rather than via them. The loan company have refused to permit this even though apparently we are within our rights. Stress levels high.

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