View Full Version : help! banks won't lend bridging finance. advice?
18th Jun 2012, 16:20
Well, after wasting two days, I thought I'd ask a better class of idiots :p
I'm retired and recently cleared my mortgage (bar a pound, which means they look after the deeds for free and any further loan is already paperworked up to the value of the original amount 20-odd years ago)
Anyhow, I found a repossession which I want to buy . my high-earning offspring in stable employment is willing to buy the family home which is worth~ 40% more than the repo.
two days down the line, the Building Soc. agrees that they DO have inter-family sales procedures, Junior Doesn't have to produce a deposit, as Dad's equity balance is a gift to junior,and they will take current market value as a baseline to ascertain what percentage they're lending (boy, that was an exhausting session ;))
So, whilst they are fiddling, i'm in danger of loosing my prime purchase which is needed to house a desparate family with 3 school age kids .
all contributions, verbal or financial, welcome!
18th Jun 2012, 17:13
What we did in similar circs was to extend the mortgage on the current home to buy the new one, then we will pay that off when we sell the old one.
Ours will be a couple of years, but you could do it for a couple of months. The arrangement fees will look a bit high relative to the loan/interest but if you really need to get the new place...
Gertrude the Wombat
18th Jun 2012, 20:12
If I'd paid off my mortgage bar a pound I'd simply be able to write a cheque for a new property - the benefits of a flexible mortgage.
19th Jun 2012, 12:05
Ah, yes, G , but my original was for 30K which they'll advance immediately......Unfortunately the repo. is more than 4x that!
just worrying that a cash buyer will jump in before I get the funds in place.......update....valuation tomorrow , on the family seat!
19th Jun 2012, 14:56
I'm retired... Probably explains it all. But it's not very clear whether or not you're willing to put up all your own equity at risk. So whatever risk this deal represents falls on the others involved, namely Junior?
And when 'like pigs at feeding time' (no insult to the squiggly-tailed sort intended), the most recent UK government measures (http://www.bbc.co.uk/news/business-18451203) promise UK lenders yet another wave of taxpayer-subsidised and very cheap loans which can be resold to consumers and businesses at interest rates of 200-400% more inevitably. It's not hard to understand why they're keeping you waiting... :confused:
19th Jun 2012, 15:15
Airship, yes, I'm aware of that, but suspect this will be as dead in the water as the "new build" initiative,under which the Gov. underwrites a first-timer's deposit (sort-of).
halif*x signed-up but they charge a higher rate for the mortgage under that deal....net result, the most stretched sector gets to payeven more. :eek:
Funny how I was offered 30K over 10 yrs (at 2.5% to boot) but they were willing to giv....sorry, SELL me a 20 year buy-to let mortgage, for a mere 3 1/2 thousand *....forgot about the valuation,money-transfer fee, one-off fee for using other than their own insurers......and an interest -rate nudging 4% (Generous blighters give a 12 month fix with that.
no wonder the housing-market is in a state of disarray.
* the "bung" is politely called an "arrangement" fee
forgot to add, later this year, Marks and Spencer, Tesco and bank of China are rumoured to be entering the mortgage market.....will they be truly competetive, or stick their snouts in the trough and price upwards to just under the opposition? interesting times ahead!
21st Jun 2012, 09:26
Mrs Cherokee recently decided that cherokee Mansions needed a new kitchen. And to be fair it did. So I found a local company and got a price to do the work. I have cash on the hip, but decided to keep it on the hip as I work in the financial services sector, and to say my job isn't secure is an understatement. So I went to the Worlds local bank, with whom I have a premier account, and a mortgage with a couple of years left to run (never in default) for 10% of the propertys value. I ask if I can extend my mortgage explaining my desire to keep my assets liquid in case of future unemployment. The amount I was asking for would have taken my mortgage upto 20% loan to value at most. I wish I hadn't bothered. I needed to produce 2 years worth of pay slips. My comment that my salery is paid directly into my account with them went unlistened to, until I had an animated conversation with the "executive fu@<hidden> wit" or "replationship manager" as he cals himself. Then they wanted £650 to value the property. I told him to pop round anytime and he could have a cup of tea. This valuation was then done "remotely" for free. finally I got offered a new mortgage which is 5% higher than my existing one, but only after I provided a letter from my employer who needed to state there were no immeduiate plans to make me redundant. At this stage I terminated the applicaiton, and paid cash. Good luck Cockney Steve with your dealings with the banks.
21st Jun 2012, 11:17
I ask if I can extend my mortgage explaining my desire to keep my assets liquid in case of future unemployment
Not exactly the most sensible gambit, I would contend. Any mention of the R word nowadays to a prospective lender will inevitably ring a few alarm bells. Why didn't you just tell them what the money was going to be used for?