Avoiding the six-month wait to remortgage

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    Avoiding the six-month wait to remortgage

    Doea anyone know of good sources to get bridge finance at low cost. EG a bank that will give access to funds to the value of a security on a property?

    EG

    If i have a house valued at £200K, no mortgage, then want to use tihs as security for bridge finance - so I draw down and thne repay the money as and when required?

    Thanks

    #2
    Originally posted by gary7 View Post
    Doea anyone know of good sources to get bridge finance at low cost. EG a bank that will give access to funds to the value of a security on a property?

    EG

    If i have a house valued at £200K, no mortgage, then want to use tihs as security for bridge finance - so I draw down and thne repay the money as and when required?

    Thanks
    There are also other ways of doing this, example by using a closed bridge on the purchase.

    If you send me a PM with your email address, i'll forward on the names of a few I have used ( I have no connection with this firms other than I have used their services in the past )

    Comment


      #3
      Originally posted by gary7 View Post
      Does anyone know of good sources to get bridge finance at low cost.
      I think most bridges are financed by motorists these days.

      Peter

      Comment


        #4
        Originally posted by pcwilkins View Post
        I think most bridges are financed by motorists these days.

        Peter
        And most over the M25 are supported by villians!

        Comment


          #5
          If you still need the name of a firm to use then PM me. I have used bridging in over half of the 40+ properties I have in my portfolio and the difference in speed and efficiency is huge.

          Once you get a good contact who delivers what they say, stick with them as Bridging finance companies are not FSA regulated so the quality of broker is (in my opinion) poor compared to regulated brokers.
          Last edited by Editor; 11-12-2007, 19:32 PM.
          No frills. No fuss. Just great value for money.

          Comment


            #6
            Avoiding the six-month wait to remortgage

            With MX pulling out of instant remortgaging in the summer, are there any other ways of financing bmv properties without having to join an investment club. Any advice or contacts would be appreciated
            neilm

            Comment


              #7
              hi guys I am new here but if you are looking for a buy to let mortgage then take a look at us. But as far as i know you need to hold the property for 6 months now before you can remortgage.

              Comment


                #8
                Bridge/instant remortgage

                Sarkin, I may be wrong but I think the poster is talking about the 'bridge' method.This is where a remortgage is done in a day often to enable the purchaser to use discounts as deposits meaning less cash injection. Unfortunately my experience of doing this was that the discount was never really in existence and I am now trying to sue the valuer and property club for professional negligence. It was my understanding only Mortgage Express offered this product.

                Comment


                  #9
                  reply

                  yes wow you are right, that was what i was getting at. Are you suing the valuer and investment club because you bought a property and in the end the valuation was different from originally thought? I would be interested in finding out if you are successful.
                  The reason why i asked the initial question is because i am led to believe there are at least 6 alternative strategies in place to get around the problem of a closed bridge and instant remortgage. I just wander if they are legal. I know it can be done, i just wander if anybody can shed a bit of light on the alternative strategies?
                  neilm

                  Comment


                    #10
                    The valuation of rent was completely over inflated meaning that the purchase price was also as on this type of mortgage one is calculated form the other.

                    This means I have paid a large chunk for a discount which doesnt exist, I am in instant negative equity and also I have to pay a shortfall monthly to cover the rent vs mortgage shortfall.

                    As it was mandatory to use the propry club's own broker and solicitor and i am not sure if it is illegal but they wanted to keep it in house.

                    I am keen on pursuing this case but it will be costly and i am out of cash so will need to start it myself.

                    Comment


                      #11
                      People whose grasp of financial matters is so slight that they have to ask complete strangers on an internet chat board should think VERY carefully before they buy things they don't understand.

                      Buying a property at the moment without a substantial cash sum to put down first is like volunteering to be the first "over the top" in the Somme.

                      Comment


                        #12
                        Wow, sorry to hear about the service you received from that investment club. Neilm, it is still possible to "bridge" against the market value and use the discount to fund your deposit. We are selling 5 - 10 deals like this per month at the moment to our investor clients [ranging from 25% below value and upwards].

                        The main problem is getting lenders to lend!

                        Comment


                          #13
                          Originally posted by robbyd View Post
                          We are selling 5 - 10 deals like this per month at the moment to our investor clients [ranging from 25% below value and upwards].

                          The main problem is getting lenders to lend!
                          Well, if you can't get a remortgage on completion you certainly don't want to tie yourself to a bridge!!

                          How are you doing those 5 - 10 deals per month, then?

                          Comment


                            #14
                            update

                            I have found a way around the problem, probably not to different from the one you are using robbie. I tend to find my own deals in my own area - but thanks for the offer.

                            Comment


                              #15
                              I'd be very wary of using a club's broker and solicitors. I will only use my own brokers and solicitors, thank you.

                              Another important factor is that people who buy into these schemes end up getting 'deals' in areas they are not familiar with, hence the overinflated prices. To someone based, say, in London anything out of town will seem incredibly cheap. That doesn't necessarily mean it is, though.

                              In any event, I would be very interested in any info on alternatives to the old closed bridge and day-one remortgage system.

                              Please feel free to post it here.

                              Comment

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