Downsizing help

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mikethediyman

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Hi we are retired pensioners looking to downsize Ideally would choose Bridging loan to buy first then sell higher value home. Problem is any of the very few finance companies are only willing to deal with developers or buy to let None appear to deal with Residential property. Some will consider loans in excess of € 500,000 but we're looking for € 360,000. Has anyone found a workaround for this situation ?
 
Have you the deposit available for a buy to let?

If so, take out a buy to let mortgage to buy your home.

Then selll your existing home, and clear the buy to let mortgage.

Bridging loans were just not profitable for the banks. Enough people failed to sell their homes and then defaulted on both.

Another possibility is a credit union loan. Unlikely but if you are a member, try them.

Brendan
 
Thanks Brendan we're a little short on deposit ( but may be able to get a small loan to add to our savings )
What you suggested sounds very interesting but I'm 75 and wife 70 so not sure if Banks would consider us on age basis !
 
Brendan Burgess said:
Is Spry Finance of any help to you?

You can borrow 25% of the value how-it-works/how-much-can-be-borrowed/[/URL]

i think I heard that they have a bridging product in development.

Brendan
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Well I tried the Credit union to no avail Thenjtalked to Spry who would only loan 25% of the value of my own property and they are not offering Bridging at present !
 
mikethediyman said:
Problem is any of the very few finance companies are only willing to deal with developers or buy to let None appear to deal with Residential property.
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I don't believe bridging loans are a thing anymore. I'm attempting to do the same thing retain my current property while buying another. I'm lucky enough to have a significant sum on deposit in excess of the required deposit and it's still been a struggle.

The Lenders will need an estimate of value of your existing property, if you have an existing mortgage needs to be <70% ltv, potential rental income amount per month and 6 months of rent plus circa 2% on top. Even then it's a bit of a lottery. Some of the new entrants to the market might be more flexible as looking for business according my broker. (Moco/Nua Money)

Realistically the best path is to get your house ready and on the market when you are ready and tell the EA not in a rush to sell until you have found your next house.
 
Wandering_Dazed said:
I don't believe bridging loans are a thing anymore. I'm attempting to do the same thing retain my current property while buying another. I'm lucky enough to have a significant sum on deposit in excess of the required deposit and it's still been a struggle.

The Lenders will need an estimate of value of your existing property, if you have an existing mortgage needs to be <70% ltv, potential rental income amount per month and 6 months of rent plus circa 2% on top. Even then it's a bit of a lottery. Some of the new entrants to the market might be more flexible as looking for business according my broker. (Moco/Nua Money)

Realistically the best path is to get your house ready and on the market when you are ready and tell the EA not in a rush to sell until you have found your next house.
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Thanks for your response, unfortunately we don't have sufficient savings to cover a deposit !
 
Is it possible to the sell house and move in with family(childen/siblings) while you look for new home?
 
mikethediyman said:
Thanks for your response, unfortunately we don't have sufficient savings to cover a deposit !
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I don’t understand why on earth you are trying to make your life so complicated. Particularly given your ages. Sell your home. Meantime get rid of all the stuff you’ve accumulated. Rent for +/- 6 months from the date of sale. With the basics, the rest in storage. And in that time buy your dream older home. Madness to try and get bridging loans etc.
 
Bronte said:
I don’t understand why on earth you are trying to make your life so complicated.
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It's the very opposite - getting a bridging loan would simplify things.

1) They buy their new home
2) They do it up to their own requirements
3) They move their stuff in
4) They sell their own home

Selling first without knowing where they are going is very disruptive.

If they buy first, they may have difficulty selling if the market goes quiet. But if they sell first, they might have difficulty buying if the market continues to roar as it is at the moment. On balance, in the present market, buying first seems less risky.

Brendan
 
We managed to sell and buy and arranged to move on the same day.

The estate agents worked with us to line it up. Said it was very common.
 
Brendan Burgess said:
If they buy first, they may have difficulty selling if the market goes quiet. But if they sell first, they might have difficulty buying if the market continues to roar as it is at the moment. On balance, in the present market, buying first seems less risky.
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The first is a very dangerous situation to be in. The second scenario is more palatable, and if they are downsizing, even in a rising market, their PPR sale proceeds should be enough to purchase an increasing smaller property. Though one supposes they are trying to get some capital.

I suspect their ages are part of the reason banks and the credit union won't do bridging.
 
Jazz01 said:
Will be very difficult to get a place to rent for +/- 6 months!
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Cleary if you go for something in the cities. But I imagine one of the holiday homes could be got for 6 months once the summer is out of the way. Not sure if it exists in Ireland, but there are such things as serviced apartments for short term letting. We used one for 2 months once in between homes.
 
I have since been told that NUA is processing applications for mortgages generally on a trial basis with about 4 brokers

Brendan
 
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