Bridging Finance – is this a good deal for me?Make Text Bigger
Hello all, I’m new to this business and working on setting up my first HMO and have another post running elsewhere on the forum about legal aspect and would also appreciate some advice about bridging finance, in short my thirty plus years pristine credit history was shot to pieces when my marriage went into disarray and mortgage payments were missed giving me an Experian score of around 622.
I’m intending now to buy out my soon to be ex – wife’s equity in our property and clear the mortgage so thinking of bridging finance to achieve this and then once I hold the full freehold take a secured interest only loan for 12-18 months after which my credit record should be good enough to move across to mainstream interest only provider. once I have the freehold I will use the house as a small ( 5 bed ) HMO
I’ve been offered bridging at 0.65 % with £4,690 arrangement fee with all monies due paid at the loans end, this will cost me £1,619 monthly and I estimate needing to bridge for 3-4 months, i.e. circa £8-11 K
I will also have associated legal cost and also for survey, but interested to know if the rates quoted are in line with the general market for this form of lending please? The property has a value of £404k. All advice / info would be very welcome, thanks all !
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