Bridging loan

................................................................................................................. Check with your mortgage provider - some will not let you have 2 mortgages at same time. (I am assuming that you have a mortgage on existing property). Eric

Ok thanks.

Am I right though that I only need a bridging loan for the deposit and not the whole amount?

You've not given us enough information.

Your plan would presumably have been to sell the old house, pay off the old mortgage and use the balance as a deposit for the new house. You may also be introducing some additional money, or using some of the money from the old house for moving expenses and so on.

Once you have this information, you will be able to work out how much money you will be short by if the old house doesn't sell.

You will also need to look at whether you will still be able to get the new mortgage if you have another mortgage. It will probably put you over the income multiples, but they might not bother if it is just for a few weeks.

In message , Mark Hula writes

Not enough info, but I reckon you will need a bridging loan of £370k which you probably wont get unless you have exchanged contracts to sell your existing property OR your income is sufficient to cover a mortgage of £370K plus your existing mortgage.

Your new mortgagee will have a clause somewhere saying that your existing mortgage must be repaid.

If you havent exchanged contracts then DONT even think about a bridging loan. It will end in tears.

"john boyle" wrote

Are you sure?

When I bought a new house a few years back, I hadn't sold my old house. I read the T&C for the new mortgage loan very carefully, and there was no mention that I had to pay off the existing mortgage first (it was with a mainstream bank).

In message , Tim writes

Only if the new lender wants you to repay it - it depnds on what you can afford so it doesnt always want you to. I have seen one or two cases in which the requirement wasnt in the offer but was in the instructions to solicitors.

Fair enough.