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Bridging loans, what to be careful of

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Struthruth Wed 09-Sept-26 07:32:16

Have decided to go ahead with this type of loan after sons remortgage was delayed and he was in danger of losing house. Lots of thought and stress!! His purchase house is particularly cheap as it needs a lot of work but is in a good location and near me.
I am selling a second home, was doing so anyway, so this and his remortgage are two means of paying off BL. Loan is costing £5000approx plus the interest. Think I have done the reseach but it is a scary commitment. There is a lot of real pressure as the seller is going to put the house back on the market if we cannot get a firm financial plan in place. Any useful safeguards or helpful comments gratefully received.

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J52 Wed 09-Sept-26 08:26:45

If you are getting the loan and then giving the money to your son for the purchase, you will have to go through the anti money laundering checks. These involve authentication of your identity, paperwork regarding the funds and their transfer.
You may need to consult a Financial/ legal advisor, if you haven’t already.

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David49 Wed 09-Sept-26 09:14:19

If you have solid equity in your home and second home why cant you just guarantee your sons house purchase.

That aside you both need to be realistic about the sale price of your properties any interest will need to be paid on both properties until cash comes in. If the son's new property needs work, is it liveable in the meantime, are they prepared to move in?
Be very careful, building work can take longer and cost a lot more that most think, do not wear rose coloured spectacles when you look at your sons plans

My daughter and family wanted to move they also chose houses that needed work and wanted help to buy them, I rejected the first 2 they were wrecks needed a lot of work before they moved in. The third needed work but was liveable, they moved in, it took 10 yrs to complete but they made lot of money when they sold it

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