Key Post ICS Bridging Loans

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lmd

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www.icsmortgages.ie

Housing Bridging Loans | ICS Mortgages | Residential Mortgages

The ICS Brand was established in 1864 and has remained a leading and trusted brand in the mortgage market throughout its 150-year history.
www.icsmortgages.ie www.icsmortgages.ie

Just trying to figure out costs.

New mortgage with different lender 300k

Legal fees €1291.50 incl VAT
Arrangement Fee 2% of Loan €6,000k
Exit Fee 1% of Loan 3,000
Total = 10,291.50

Are my calculations correct? Could anyone advise how much would be payble each month along with this from their website info?

Was kind of excited to see they are doing bridging loans as currently in a chain but think its too expensive especially if our sale falls through for any reason.

Anyone any thoughts?
 
I agree with Gordon.

Bridging Loans, while typically short term, are far more risky for a lender, than a traditional homeloan.

The fact that most lenders stopped providing Bridging Loans years ago, says it all.
 
MrEarl said:
I agree with Gordon.

Bridging Loans, while typically short term, are far more risky for a lender, than a traditional homeloan.

The fact that most lenders stopped providing Bridging Loans years ago, says it all.
Click to expand...
Hear hear.

It’s a cost of doing business and should just be baked into the transaction costs. One would expect to pay 6% over six months. It’s the cost of a kitchen or a couple of bathrooms to not have to sell and then rent.
 
This is a great product.

When was it launched?

Of course, it has to be more expensive.

It would be great if another lender competed for the business and brought the price down.

Brendan
 
lmd said:
Was kind of excited to see they are doing bridging loans as currently in a chain but think its too expensive especially if our sale falls through for any reason.
Click to expand...

It's very hard to know whether to go for this or not. It would depend on how much you want the house.

If you go sale agreed to buy your dream home for €300k but your own house has not sold yet, then go for it.

If it takes you three months to sell your own house and buy the other house, then you will pay
Legal fees €1291.50 incl VAT
Arrangement Fee 2% of Loan €6,000k
Exit Fee 1% of Loan 3,000
3 months' interest €3,000
Total = 13,291.50

€13k is a lot of money, but is it material when buying and selling a house for around €300k? You might have been prepared to pay €350k for the new house.

Other people choose a quick sale of their own home at a lower price to enable them to avoid bridging.

Only you can decide if it's worth it or not.
 
You would need to be fairly sure of selling your own home quickly.

During the boom, people bought first and then put their house on the market. The market turned relatively quickly and people found that they could not sell their own home and ended up with two mortgages.

But if that happens, the fall in prices will probably be a bigger concern than the 1% a month bridging.
 
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