Bridge loan payment

[Somebodyimportant1]

Hello all, I have a bridge loan due in a month but won't be able to pay due to the current global circumstances and the housing market as more or less ground to a halt. Does anyone know if there are special ways in which bridge loan lenders are dealing with requests for extension during these peculiar times? I am sure new lending companies would have sprung up to take advantage of the pandemic. Does anyone know any that can be approached at this time? Not high street banks pls. Thank you.

You want to borrow more money?

Just get in touch with the loan company of the existing loan and talk to them.

It doesn't sound like you have much financial sense tbh. You must have known the loan was due to be paid back soon, Coronavirus can't be the only reason for lack of funds. Borrowing more money would be really stupid.

I'm assuming the bridge loan is because you've bought one house and not yet sold another? Normally the most common use of bridge loans, and definitely something corona would've heavily impacted. I don't believe there are any special rules/support for bridge loans, but depending on who the loan is with, they should hopefully be reasonable and willing to extend. The only issue is that interest is usually high on bridge loans, and they'd be well within their right to continue charging you the high interest. Difficult to know without knowing who you've borrowed from/how much/what for.

@cornersteps it was solely because of the pandemic as the loan was taken 20 days before UK lockdown in March.

I thought the housing market was doing pretty well at the moment?

Stamp duty holiday, people wanting more space and people with secure incomes having more disposable income due to reduced expenditure on travel and leisure.

If you have an unsold property where you need to release funds, you have a choice of dropping the price for a quick sale, converting the mortgage to a buy to let and renting it out, or continuing with the bridging loan, so you need to decide which is likely to be the least worst option. Perhaps talk to a mortgage broker to see what options are available to you. But why not high street banks? Many have specialist arms who may offer the product you need.

But yes, talking to your current bridge loan lender is the way to go, rather than looking for 'new lending companies that have sprung up to take advantage of the pandemic' because that's likely to be a quick way to find a company that offers expensive products aimed at taking advantage of your desperation.