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Are bridging loans still available in current climate

6 replies

Weeteeny · 15/04/2008 15:01

Have just heard today that our buyers are pulling out and we are supposed to be completing the purchase of our new house next week. There are so many reasons why we don't want to lose out on this house, we are so upset. Awaiting bank phoning us back, does anyone know if banks are still willing offer bridging loans without a concluded contract on the sale of your original property? We accepted an offer within 4 weeks, and are hopeful we would do so again..........in Scotland by the way in area where the prices are bucking all trends and still rising. Am terrified we will lose out on our "new" house.

OP posts:
noddyholder · 15/04/2008 18:00

I would never get a bridging loan in this market.Get your agent to aggressively market your house?Unless you can afford two mortgage payments comfortably which I think in the current climate is v important

nervousal · 16/04/2008 10:00

A briding loan when you don't even have an offer on your own house?? I'd say you were mad. I know its hard to lose out on a house that you think is the house of your dreams, but would it still be the house of your dreams if you were paying a bridging loan along with a mortgage in 6 months time? WE also live is an area where supposedly prices are bucking the national trend in Scotland - but the risks would be too big.

sparkleymummy · 17/04/2008 09:30

Think you're mad to consider it but our buyers have just used bridging finance to pay the deposit on our house so its obviously still available in the right circumstances.

I was convinced our sale was going to fall through but we exchanged last week even though our buyers house still hasn't sold!!

Ok so it could all still go belly up if they come to their senses and realise that they may well be running two mortgages when we complete in a couple of months time but at least we'll have our ten per cent sitting in the bank.

zippitippitoes · 17/04/2008 09:31

you would have to be seriousl;y insane to even think of this

honestly dont

katebee · 17/04/2008 11:24

Definitely don't take out a bridging loan - much too risky in the current climate - you could find yourself unable to sell your current house at a decent price and losing everything. In your position I would try to say to myself "if it is meant to be it will happen". Hopefully you will find another buyer for your house soon. Also the house you are trying to buy will hopefully not be sold to some one else immediately so you will still be in with a good chance of getting it. The only way I would go ahead with the purchase with the new house without having sold would be if you could rent your existing house out and afford to pay both mortgages for the long term but I don't think I'd be inclined to do this at the moment when it is likely prices will fall considerably.

morethan1 · 17/04/2008 11:27

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