Posted on 22 June 2014 by Sharon
We have virtually completed the purchase of a property; however we have now heard that the developer of new house ( top of chain) is threatening to 'pull the plug' on the purchaser of that property and put the house up for sale for another £25.000, unless all of the chain move within seven days. This deadline is impossible. If required could the purchaser apply for a bridging loan for approx 4 weeks and what are interest rates likely to cost. Thank you.
On the face of it, there's no real reason why the person at the top of the chain couldn't get a bridging loan. However this is a fairly expensive form of lending, and the rate would depend on the loan to value they'd need.
Typically bridging companies will lend upto around 75% of the value of the property, and there is usually a percentage arrangement fee (say 2%). The rates do vary a fair bit between the different companies, and it may be that they'd have to sacrifice the best rate, for the quickest lender. Rates could typically vary between 0.65% to 1.15% depending on LTV.
If they'd like to talk in more detail, then they can contact one of our consultants on 0344 346 3672 and they'll be able to give them a more exact idea of how we can help.
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