Bridging Loans

[u2meetsrem]

I intend soon buying a house for around 400K & have 30% of the amount as deposit.
I currently own a house that is worth in excess of the balance but will not be in a position to sell until 2007.
What is the best option, a mortgage for over 200k which I would really only need for a year or a bridging loan. What are rates like for a bridging loan? What banks deal in bridging finance.
Are the rates much higher than mortgage rates?

 

[Petal]

Hi there,

From what I gather, bridging loans are always treated as personal loans and as such are subject to higher interest rates (between 6-9%) so a mortgage would be much, much cheaper. And since you have 30% of the price, you would qualify for a tracker rate for a loan to value of 70%, so in my opinion, the better way to go. Best thing to do is probably to ring up the banks and ask, you would have to go for an option which allows you to pay if off early.