Posted on 20 February 2011 by Lise

My partner and I are both selling our houses so that we can buy a property together. We have found a property we both love but only my house has sold. From the sale of my house I have £60,000 equity. The property we would like to buy is on the market for £295,000. My partner's property is on the market for £170,000 and he has equity of around £120,000 in his property. Please could you help us with if there is any way in which we could move forward, through a bridging loan or additional mortgage with the purchase of the property we would like, prior to my partner selling his house? Our joint incomes are currently around £65,000. We would appreciate any advice you can give us.


You situation is a typical example of where a bridging loan can help you secure the property of your dreams before the sale of your existing property goes through.

You will have £180,000 from the equity of your existing properties and from this you will need to meet your solicitors fees, estate agent fees, stamp duty and other associated costs before calculating how much deposit you put down on the new property. In normal circumstances you then just arrange a mortgage for the difference. The only difference with Bridging finance is you need to arrange a short term loan for the amount of the deposit not yet released.

You need to be aware that bridging finance is not cheap and in addition to a large upfront fee you can expect to pay up to 2% per month interest. The exact amount will depend on the overall loan to value and whether or not you have found a purchaser and exchanged contracts.

I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the adviser the date of your question, they will be able to look at your situation and take it from there.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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