About Bridging Loan

Bridging loan

Questions and Answers

bridging Loan?

Q) I am looking to get a bridging loan for a deposit for a house and was wondering if anyone could recommend any companies??

A) A bridging loan can work out very expensive, with an arrangement fee of 1% and payments of around 1% per month. Natwest do bridging loans. I assume you're looking for a bridging loan as your solicitor has asked you for 10% deposit prior to exchange of contracts, and you haven't the funds. You have two other choices: 1. Get your solicitor to ask the vendors solicitor to see if they'll accept a lesser deposit. 2. Ask your solicitor to enquire about "guaranteed deposit bonds" (I think they're called). Its basically an insurance product which covers the 10% of the deposit.

HELP Bridging Loan?

Q) HI I HAVE PURCHASED A NEW PROPERTY WHICH WILL BE READY ON THE 25TH MAY BUT THE BUYERS BUYING MY PROPERY CAN'T MOVE INTO THE 28TH MAY SO I HAVE TO TAKE A BRIDGING LOAN TO COVER THE FEW DAYS BUT THE BUILDER HAS SAID THEY WILL COVER THE COSTS OF THIS BUT I AM NOT THAT IN THE KNOW ABOUT THE BRIDGING LOAN. THE PROPERTY BUYING IS 139,000 MORTGAGE REQUIRE FROM LENDRS IS 112,000 FOR NEW PROPERTY EXTRAS ON NEW HOME ARE 5,600 ITS JUST TO SEE THE ACTUAL AMOUNT I NEED TO BORROW ON BRIDGING LOAN IS IT THE 139,000 + 5,600 OR JUST THE DIFFERENCE FROM AMOUNT BORROWING FROM LENDER 27000 + 5,600. SOMEONE HELP THANX.

A) If you plan to pay back the money , you can ask for a loan at Prosper. More information at http://www.acreditlibrary.com/prosper.html . You can also try your luck at online charities, people may send donations. More information at http://www.laodn.org/

I want to buy a property at auction, what is the typical APR for a bridging loan.?

Q) Also, are there any specialist mortgage companies with a quick turn-around that would finance an auction purchase. I'm not interested in going down the route of mainstream banks.

A) Phone a bank.

We have bought a house but haven't sold our own yet. Just how hard is it to get an open-ended bridging loan?

Q) We have five weeks to sell. We haven't concluded missives yet though and our solicitor is trying to re-negotiate entry to a later date. Our flat has been on the market for 4 weeks, some interest but no offers yet. We have put it on from today at a low-end fixed price. We have the option to withdraw if it doesn't sell but really don't want to! We could sell the flat in the next week or two but it's a guessing game. Any advice?

A) A similar thing happened to me a couple of years ago in August 2004 - a couple put an offer in on our house, we accepted and immediately went out looking for a house ourselves and ended up with a new one - the missives were put through very quickly on the new one and unluckily for us the people pulled out of buying as they had not sold their own house. We then had to put it up for sale again, by this time it was late September and the market had slumped. We ended up having to sell it for £10k less than we'd budgeted on the previous offer as we were desperate and we could only get a bridging loan if we had completed missives on the sale. In the end we had a bigger mortgage and a bridging loan for 3 1/2 months. Paying 2 mortgages and a bridging loan at the same time is hell. Now we have had to move again as we couldn't afford the dream house after all that bother. If you don't get any luck this week with purchasers I'd consider pulling out of your purchase - as I said it's hell.

information how bridging loans work?

A) Short term funding, or to use it's well known term, Bridging Finance, is probably the most under used form of financing. A bridging loan can provide fast access to funding with the minimum of formalities. Bridging finance can be used in a number of different circumstances, e.g. refurbishment - buying dilapidated properties and then renovating and selling them in a short space of time. One of the most common usages is when people buy a new property before their present one is sold - "a bridge". With bridging finance, the loan will always be secured against residential or commercial property. A first or second charge will be taken against new or existing property, or a combination of both. Another great use for bridging finance is for people who purchase property at auction, where funds are required quickly. Bridging is much quicker to arrange than a normal residential mortgage; on average 3-5 working days from first enquiry to completion Easy Bridging Loans Plc understands and recognises that many individuals and companies require bridging finance for a variety of reasons. Below are several typical situations where short term loans may be required: Individuals purchasing their own domestic home and their banks or building societies are unable to complete on time. Easy Bridging Loans plc has completed a domestic purchase in 27 hours!!!! Providing a quick loan. Individuals purchasing residential property, other than for their own occupation, such as an investment or development opportunity. Individuals simply seeking capital raising on their own homes or indeed any other acceptable residential property or commercial property that they own or are purchasing. Individuals purchasing a residential property or commercial property at an auction, whereby their banks or building societies are unable to lend until such time as the property is in a mortgageable condition. Easy Bridging Loans Plc lends on value no matter what condition the property is in. Companies seeking to raise money on their premises. Here bridging finance is particularly convenient to counteract a short-term cash flow problem bearing in mind that Easy Bridging Loans Plc can complete loans, even to companies, in under 48 hours. Providers of quick loans.

Bridgeing Loans???

Q) Can someone please tell me how Bridging loans (uk) work? we have a house that we need to sell but have found the perfect property would a bridging loan be able to help, and how much do they cost? thanks

A) Essentially it's a time limited, high cost, Mortgage 'extension' on your old house whilst you sell it. For example you might be able to get 2 months for 2% of the sum borrowed .. so if the outstanding OLD Mortage is (say) £200,000, the Bridging Loan will cost you £4,000.

What is best when you can't sell your house and need a buyer?

Q) I have bought another house so need another buyer for my house do I : *Rent (I will have to pay extra on top of the rent)? *To sell the house for cheaper to one of those organisations that does quick sales? *Try and sell it below valuation price (that is what Im doing at present)? *Get a bridging loan at 1% of the value of loan to set up * Get sued by the company i have bought the new house from (will lose around 15,000)

A) i am in a position to assist you call me on 07985577366

Estate agents favouring the buyer who will arrange a mortgage through them?

Q) I am not sure if this is correct, could they benefit from this? We have put in an offer at the full asking price, I know the other offer is at around £5000 lower than ours. I am tied in to a mortgage lender so cant change lenders, the other people will arrange a mortgage through the agents, and they seem to be getting ahead of us! The agents say its because we are in an uncomfirmed chain, although the offer on our existing place is from a first time buyer. I have now thrown down the final test saying that I could get a bridging loan and be effectivley chain free, this has not helped that much either!! So my question do you think this agent is trying to get a double comision out of the sale of the house and arranging the mortgage, do they do that, has it hapend to you??

A) No, but of course you are correct that the firm can get commission from the Mortgage company....If you think there are underhand dealings then when things are complete, make a note of all conversations you had, and ask for a full copy of the file and if necessary you can go to the ombudsman.......Why not approach the sellers independently, this is not illegal, and tell them what your offer is...the estate agent should have notified them of your offer...why would they turn it down, they have no benefit from a mortgage company...it may be that the sellers do not know your exact circumstances...call and see them, and make sure they do.

advice on moving home?

Q) I have 10% deposit to put down on a new home. I currently have a mortgage and would be able to put down another 30% after i sell my current home. How does the system work in regard to this? I dont really want to take out a bridging loan, would i have to sell my current home before i can buy the new one? Would they take the value of my current property into account when working out a new mortgage?

A) I advise you to sell your place first and then complete contracts on your new home purchase and existing home sale on the same day. This is the way most people do it, so I'm sure that banks and solicitors will be able to advise on this. A word of caution - don't touch bridging loans with a barge pole. They should be an absolute last resort and even then are rarely worth it. Also get advise from lots of sources - not just your estate agent who is just after the sale! Good luck. Ed

moving house and entry dates.?

Q) if you buy another house while you already have a mortgage, do the entry and exit dates have to be the same day? If so what is the best way to go about transferring furniture etc? It seems a lot to expect people to move all their belongings in a few hours! Would be keen to hear from anyone else who has been in this situation and any solutions to buy a little more time-without a bridging loan!

A) Hmm, that is kind of a tough one. Simply because there is so much involved. How much more time are we talking here? You really should have planned a bit better on having your things out of the house on-time. Most important thing, I would think is to have your stuff out of your old house when you are supposed to. Put it in storage if need be. If this will be impossible, you will need to contact a Real Estate Agent, if you don't already have one. Some will do consulting on an hourly basis. Also, contact escrow and the buyer's agent. They will charge you a pretty penny, I'm sure for holding up escrow, but, it might help. Best of luck to you!

Is it possible to get a bridging loan in France ?

A) Yes. Any bank can propose you this.

Bridge Loan:?

Q) I got a bridge loan for my house I just bought. I have my other house on the market for sale. Its been 9 months and my home as not sold. Can I get out of this bridge loan and refinance it. Can I foreclose and move back to my first house. Somebody help........

A) Dont wait, Call your lender ASAP and find out what your options can be!!

Bridge Loan?

Q) What is a bridge loan and how does it work.

A) It is a short-term bank loan of the equity in the home you are selling. You may take out a bridge loan, or interim financing, to help with a knotty situation: closing on the home you are buying before you close on the property you are selling. This loan basically enables you to have a place to live after the closing on the old home. The key to a bridge loan is having a qualified buyer and a signed contract. Usually, the lender issuing the mortgage loan on the new home will write the interim financing as a personal note due at settlement on the property being sold. If, however, there is no buyer for the property you have up for sale, most lenders will place a lien on the property, thereby making that bridge loan a kind of second mortgage. Things to consider: interest rates are high, points are high, and there are costs and fees involved on bridge loans. It may be cheaper to borrow from your 401(K). Actually, any secured loan is acceptable to lenders for the down payment. So if you have stocks or bonds or an insurance policy, you can borrow against them as well. So basiclly it is this: A "bridge loan" is financing secured by your current home, a home typically listed for sale. The bridge loan is used to finance the purchase of the second home and is paid off when the first home sells. In addition to other questions, when considering a bridge loan seller/borrowers should ask about interest costs, up-front fees (because bridge loans are short-term financing, it's better to pay a higher interest rate than points for a loan which will generally last just a few weeks or months), and what happens if house #1 takes longer to sell than anticipated.

I need a bridge loan?

Q) I am rec'ing funds in a very large amount. But until it comes I need a bridge loan so I can pay off lawyers and bills. How do I get a loan and use the money that I am going to rec' as a security? I have all legal documents but need help like yesterday.

A) If you have a contractual commitment to be paid a certain amount at a certain time, there are finance companies that will buy out the agreement. Quick search: http://www.jgwfunding.com/structuredsettlements.asp

In Ohio, can you do a bridge loan and still get a 5/1 buy down mortgage on your new home?

Q) We live in Ohio and are selling our condo. We've had it on the market for almost 7 months. We have found the house we'd like to buy and have been thinking of a "bridge loan" and yes, we know they can be very dangerous. Can we still get a 5/1 buy down on the house we want, and a bridge loan on our condo? Thank you in advance.

A) Depending on the circumstances, yes. Shoot me an email to msmith@premierloangroup.com, and we'll see what we can do! Marty

What is a bridge loan? We have our house on the market and want to put an offer on a brand new bank owned home

Q) We cannot afford 2 mortgages but love the bank owned home. They of course will not accept contigency offers. Is a bridge loan a good idea or are there other financing options out there? Or do we just be patient and wait until our home sells and possibly miss out on the deal? Thanks!

A) A bridge loan is a loan from a third party who will lend you the down payment during the time that your current home is in the process of being sold. It generally comes with the understanding that it will be repaid in full in a very short time (say 60 or 90 days). Congrats on the purchase of your home.

How risky is a bridge loan?

Q) I'm preparing to put my home on the market, but I have already found the house I want to buy. I'd love to make a bid, but I need the money from my house sale for the down payment. My realtor suggested that I look into a bridge loan.

A) Bridging loan is like a time bomb you planted it for yourself!!! The purpose of getting a bridging loan is to help you; 1)when you already got a firm buyer for your existing house. 2)you hasn't got enough monies on hand to pay for your new home 3)Do not get the bridging loan without a firm buyer from your existing house.(no doubt you may love the new house very much) Good Luck

Which one is better and less-risky: bridge loan or regular mortgage?

Q) My current house isn't sold yet and I don't want to lose my new dream home, which the payment is due by September. Should I apply for a bridge loan or just get a new mortgage for my new home? Which one is less risky? If I get a new mortgage and I just sold my current house, can I put the cash to pay some off? Can I re-finance the mortgage and make the payment lower after pay some off?

A) bridge loan will secure the house you want but will be pricey after awhile. if you get a new loan/mortgage you'll get the house and will be able to use the money from the sale to help pay some of it off. make sure you get little or no prepayment penalties. your refinance will only be advantageous if your credit score is good. you will need some seasoning in order to get a refinance as most lenders will not loan you money right after you move in. some will but for a very high rate. either way, you're taking out more money than you need to secure what you want. my advice, get a new mortgage, I assume you've paid or are close to paying off your old one?, and secure your new house since it is very important to you. once you sell the house, retain a good majority of the money, pay off the old mortgage is you haven't already. if you rate and terms are good, then keep them for your new mortgage. if they're bad, wait at least 6-8 months before refinancing.

What happens to the mortgage on our existing house if we use a bridge loan to purchase a new house?

Q) If I use a bridge loan to buy a new house, what, if anything happens to the mortgage on our existing house? Are we then responsible for our first mortgage, bridge loan payments and the new morgage? What is the benefit (other than obviosly being able to purchase the new house) of that?

A) 1. On the Bridge loan, you can take out up to 85 percent of the value, and put it into a new home - payment is deferred for 6 months. That will enable you to #1 buy the new home, or build the new home #2 gives you time to sell your other home. 2. You are still responsible for all mortgages. 3. Lenders will take a hard look at your credit, your middle credit score needs to be in the 600's for the Bridge loan. The middle score varies from lender to lender rom 620 - 680 and higher. Other factors come into play. BRIDGE LOAN: It is a short-term bank loan of the equity in the home you are selling. You may take out a bridge loan, or interim financing, to help with a knotty situation: closing on the home you are buying before you close on the property you are selling. This loan basically enables you to have a place to live after the closing on the old home. The key to a bridge loan is having a qualified buyer and a signed contract. Usually, the lender issuing the mortgage loan on the new home will write the interim financing as a personal note due at settlement on the property being sold. If, however, there is no buyer for the property you have up for sale, most lenders will place a lien on the property, thereby making that bridge loan a kind of second mortgage. Things to consider: interest rates are high, points are high, and there are costs and fees involved on bridge loans. It may be cheaper to borrow from your 401(K). Actually, any secured loan is acceptable to lenders for the down payment. So if you have stocks or bonds or an insurance policy, you can borrow against them as well. So basiclly it is this: A "bridge loan" is financing secured by your current home, a home typically listed for sale. The bridge loan is used to finance the purchase of the second home and is paid off when the first home sells. In addition to other questions, when considering a bridge loan seller/borrowers should ask about interest costs, up-front fees (because bridge loans are short-term financing, it's better to pay a higher interest rate than points for a loan which will generally last just a few weeks or months), and what happens if house #1 takes longer to sell than anticipated.

Is there such a thing called a "bridge loan" ?

Q) I am looking into building a house. The problem is say I own a house worth x dollars and I owe less than the value of the house. I took out a home equity line of credit for the balance of the homes value. Now the problem is that land costs roughly the whole amount of the line of credit so if I buy the land I will have no money to start construction on the land I would now own. Is there a loan the banks can give me with next to no payments until the new house is built so I can sell the first to pay off the line of credit and the first mortgage?

A) A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory. Also known as "interim financing", "gap financing or a "swing loan". As the term implies, these loans "bridge the gap" between times when financing is needed. They are used by both corporations and individuals and can be customized for many different situations. For example, let's say that a company is doing a round of equity financing that is expecting to close in six months. A bridge loan could be used to secure working capital until the round of funding goes through. In the case of an individual, bridge loans are common in the real estate market. As there can often be a time lag between the sale of one property and the purchase of another, a bridge loan allows a homeowner more flexibility.