new-home-1540871_640
buildings, home buying, house search, property

To Bridge Or Not to Bridge – Big Question

I have several pals are in the middle of house moving.  There seems to be a thing about first time buyers who think they have their mortgage in place when they start looking at your house, but when contracts start being presented in earnest, amazing complications arise.  Two such couples have had this occur to them.  They have got so far down the line, have somewhere super-duper to move up to, but then a hitch occurs.  In the bad old days, it might have been suggested that so as not to lose the new place, they took out a bridging loan to cover until their buyers could complete.  Wooh, that seemed like a pretty crazy thing to undertake with 16 to 19% mortgage and bank rates, but these days, it probably is not so mad.  The bank rate is still less than 3%, but a bridging loan is still a major risk, especially if the buyer turns tail and leaves the party altogether!