Our buyer has pulled out. Could we get a bridging loan?

Posted on 1 July 2014 by Siobhan


Our buyer has pulled out. Could we get a bridging loan?

We own outright a property valued £1.65m.  We have income after tax of £11.5k a month.  We have accessible savings of £500k. We have just lost our buyer 2 weeks before exchange.  We don't wish to lose our purchase.  We could probably delay exchange till end July.  Completion beginning of Sept.  We are considering bridging finance.  Likely costs of bridging finance for 3 months?  Early withdrawal poss?  Other options?

Siobhan,

Bridging is certainly an option, and we could certainly look at the cheaper rates. Typically rates start around 0.65% per month, with an arrangement of 2%. You don't mention how much the property you are looking to move to is ? We could also look at a 'Let to Buy' for yourselves, weherby we could capital raise against your existing property, to provide the funds for the new purchase. This would mean that you'd have to rent your existing property out for a set period of time, before looking at trying to sell again.

If you'd like to discuss your options in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you a clearer idea of exactly how we can help.

Regards,

Simon

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