Posted on 19 February 2010 by Frances
We want to buy a bungalow for £184,000. We own our home valued at £229,000. Our buyers have pulled out at the last minute and we do not want to lose the bungalow is there a way we can raise funds using our own home? My husband is retired aged 71 I am in full time employment aged 61.
It is possible to raise funds using your existing property by arranging what is known as bridging finance. This is a short term loan secured on the existing property, which literally bridges the gap between the purchase of a new property and the sale of your existing one. Due to it's short term nature and because the amount borrowed often bears no relation to your income, the interest rate and fees on this type of loan can be quite high.
You can typically borrow up to 70% of your property's current value if you do not have a set completion date for the sale of your property or 80% if you do.
I recommend that you speak to an independent mortgage adviser who can explore the different options available to you.
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