Bridging Loan - typical rates

[mickaxe]

Hello,

We have gone sale agreed on both our own house and our new one. it looks like we will need bridging finance to pay 10% on signing of contracts. Typically, what rates are charged for this? Does it depend the amount of money/length of time it's required for?

Thanks,

 

[Sarah W]

Closed bridging rates are usually the same as homeloan rates but it does mean getting the new mortgage with your existing lender. Alternatively you could negotiate a lower deposit or borrow the deposit either as a top up on your existing house or as an unsecured loan (higher interest rate but no legal fees and you then have the flexibility to shop round for the new mortgage).

Sarah

www.rea.ie

 

[nt00deep]

With bridging, in my case I found convenience more of a factor than the underlying rate.

If you anticipate that the bridging period will be short (and of course there can be no guarantee of that because your buyer could still walk), then I wouldn't lose sleep over rates.

I took bridging with my new mort. provider because they already had all my documentation and so it was a matter of a phonecall, one signature and 3 elapsed days to get it organised. I did pay more than mortgage rates (can't remember exactly), but with the total interest bill being 200 - 300 euro, it was well worth it for the convenience.

 

[Petal]

I took out a bridging loan for contract deposit and PTSB charge 9% APR. I think ICS charge 6%, but all the other banks are around the same as PTSB.

 

[mickaxe]

If you anticipate that the bridging period will be short (and of course there can be no guarantee of that because your buyer could still walk), then I wouldn't lose sleep over rates.

I'm not sure how long I'll need to bridge at this stage - in this instance should I be looking for amount to cover the total cost of the house instead of just the 10%?