Pensioner bridging loans

R

Really C

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My parents are selling their house, its only on the market a few days. They have found their dream house. My father is a pensioner with a private as well as the state pension. Is there any finance available to them that they can get so they can secure their dream house, until they sell their own house.

All information greatly appreciated.
 
Well they should approach their own bank as a start BUT the market is so slow at the moment, that banks are really shy of offering Bridging on a new purchase unless the borrower has signed contracts on their own in place.

They really need to sell their own before trying to buy anywhere else. I have a number of situations like this and some of my clients are coming around to the idea that they just cannot look at any property to buy until/unless they sell their own. There is a realisation that the market has changed dramatically from the heady, blithe, confident days up to mid 2006. Its now very cautious and very laboured.

mf
 
mf1 said:
Well they should approach their own bank as a start BUT the market is so slow at the moment, that banks are really shy of offering Bridging on a new purchase unless the borrower has signed contracts on their own in place.

They really need to sell their own before trying to buy anywhere else. I have a number of situations like this and some of my clients are coming around to the idea that they just cannot look at any property to buy until/unless they sell their own. There is a realisation that the market has changed dramatically from the heady, blithe, confident days up to mid 2006. Its now very cautious and very laboured.

mf
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This should be a key post.

I've lost count of the amount of people I know with their houses on the market for months on end who haven't even got a smell of a buyer. A couple of these are on open ended bridging. They are in severe financial trouble. My wife and I did it 4 years ago and it dragged on for 6 months (not all of it on bridging). It was hell and that was when the market was booming. I can't imagine what it's like now.

The real problem is that the smokescreen being thrown up by the estate agents and banks is obscuring the extent of the crisis in the market at present. If you're thinking of moving, don't dream of even looking at a house until you sell your own. You'll get hooked on some house that the estate agent will persuade you is about to be snapped up unless you move quickly (you will in fact be the only person who's viewed it in months). Safe in the knowledge that your house is worth €x, you'll proceed. In fact your house is worth €x-20% but no estate agent will tell you that.

Save yourself the heartache. Sell first. If you do manage to sell (and there's a strong possibility you won't unless you slash the price to well below your most pessimistic estimate) then the tumbling market will give you more purchasing power the longer you wait to go looking.
 
Great advice from oysterman - I have family members whose houses have been on the market for over 12 months in what are supposed to be desirable areas - this is despite dropping the asking price by over 25%
 
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