Hi

We are retired and have enough cash to build our house and make it wind and watertight. We need to fund the fitting out of the house with money from the sale of our existing home, which is mortgage-free.

Is the best way to use a bridging loan secured on the existing home we are going to sell, or is there an alternative approach?

Can anyone recommend a company/financial advisor who could help arrange a loan if this is the best route?

Thanks

 

21 hours ago, Lincolnshire Ian said:

 

Can anyone recommend a company/financial advisor who could help arrange a loan if this is the best route?

 

 

Why not go directly to the lenders & ask yourself?  Paying somebody to ask a few straight forward questions on your behalf doesn't seem sensible to me.

 

& I'm sure there will be alternative approaches.  Several years ago, I needed a cash injection to buy some machines for my business & I had upwards of £60,000 of free debt spread across several credit cards on 0% interest deals for terms between 12 months & 24 months.  That's a completely free loan.  You just have to make sure you have direct debits in place to make the minimum monthly payments for you, then clear the debt before the 20%+ interest rate kicks in at the end of the 0% term.  

Assuming you’ve got same sort of income (salary, pension or otherwise), would it not be more cost effective to remortgage the property you’re selling with a tracker product (no product fee/ no early exit fee)? You’d likely need a mortgage broker to get you the best product (especially if you’re in the pension bracket) and you maybe won’t find one without a product fee but it’s probably going to come in far cheaper than a bridging loan which can be quite demanding in terms of fees, rates and terms. 

Bridging loans are typically 1% /month +fees so 15% per annum.

 

You should hopefully be able to find some cheaper options.

Depending on how much cash you need - maybe just a simple secured or homeowner loan? Check with your bank?

If you're intending to sell anyway, selling now and moving into a small rental once sold while you build may work out cheaper than something like a bridging loan and you'd have the certainty of knowing where your finances stand. 

 

If you wait until watertight and then struggle to sell, finance costs for your fit out could really start to mount.