Can we get a bridging loan whilst we carry out modernisation on a new property?
Posted on 6 January 2014 by Jackie
We are living in a property worth £800,000 - £820,000 (an identical house sold for £815,000 in Aug 13) and have a mortgage with Nationwide of £180,000. If I wanted to buy a property at about £600,000 and spend £50,000 on modernisation/improvements over 3 or 4 months before selling our current home and moving in, would it be possible to arrange bridging finance to achieve this? After the purchase/renovation/sale of our current home was completed, we would still need a mortgage, albeit a much smaller one than we have now.
There are a number of ways of achieving your aim, and bridging is one of them, although it does tend to be very expensive.
Often when we look at cases like this we can usually find a more cost effective way of raising the finance, & options open to you can include a second residential mortgage or a development loan. While both of these two would be based on your specific circumstances, including your income, but may well be cheaper than a bridging loan.
The best thing to do would be to contact one of our mortgage experts on 0844 346 3708 and talking it through with them. If you do call us, could you please tell the consultant that you sent in a question via Ask The Expert.
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