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Discussion Starter · #1 ·
Hi, just wondering if any one out there has any ideas on how to raise some capital to complete a house purchase.
problem is I have found a property in france, and paid the deposit, unfortunately the buyers who were buying my UK house have pulled out and the other couple who were interested have bought a property so I am left in limbo.

has any one any ideas on how to raise a few thousand in a short period of time.
 

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My wife and I had a bridging loan to move from Normandie to the S of France. Getting it was an administrative nightmare. In the end it was in the name of my French wife because the finance company did not want to understand Brit bank statements! However, it worked out in the end, we got the bridging loan and we moved.

If you start the process for a bridging loan post the info here and I will give you some hints etc.

Shop around (France and UK?), and you may have some success. 2 years ago I purchased to holiday rental appartements in France. My own bank gave me a rate for a mortgage on some of the price. I went to a loan agent (yellow pages) and got a better quote. I went back to my bank and they bettered the agency obtained rate!

Also, ask the notaire for advice, they deal with loans etc everyday for the sale and purchase of properties. I've found notaires very good for informal advice - particularly the "assistants" rather than the big noise himself.



DejW
 

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Hi, just wondering if any one out there has any ideas on how to raise some capital to complete a house purchase.
problem is I have found a property in france, and paid the deposit, unfortunately the buyers who were buying my UK house have pulled out and the other couple who were interested have bought a property so I am left in limbo.

has any one any ideas on how to raise a few thousand in a short period of time.
Hi,
If at all possible avoid bridging loans. If you have a french bank account you may be able to get a personal loan of up to 25 000€ at a reasonable rate of interest. Speak to your bank.
 

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Looking at the original post, looks like the OP is still in England.

Depending on how much the 'few thousand' is, would surely dictate which way to go!. If it's the balance then I guess the options are limited as the amount will no doubt be largish.

Being in the UK, personal loans should be available at around 5% - 7% for up to £25k as stated. Anything larger and it could be the bank (rates aren't much good at present) or a short mortgage via the open market.

We worried about a similar scenario and decided to tackle it differently, raising the cash on an interest-only mortgage on the UK address, with a low fixed rate for 2 years, which we can pay off when we sell. Takes the stress out of the buy/ sell bit!

Probably several answers to this one, but the one problem could be lending on French property, UK institutions are not keen on that.

PaulW
 

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Discussion Starter · #6 ·
I will be staying away from bridging loans and any thing else supplied by a bank, there are currently too many restrictions which means I am unable to gain a loan.
as mentioned banks stay away from lending money too buy foreign property.
all this means is that i am stuck in limbo until i can find another buyer for my uk property
as it stands there is over £50k equity in the property, trouble is as I am self employed and busy winding down my UK business I am not able to meet the banks current lending criteria.
would be i deal if I could find an investor to lend the amount at a 10% return rate.
but then I am only dreaming.
 

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Are you saying your lender won't remortgage, even though you are still working and have 50k equity? Yikes.

I know it's a lot harder getting loans in the UK than when I lived there but do these dodgy brokers not still exist, who can get you mortgages at inflated rates when the banks turn you down? If I was sufficiently confident I would find a buyer soon and would be able to repay within a year or so, that's what I might consider, in extremis.

I was in that situation but t'was back in the days when British banks threw money at you. I went to my bank to apply for a topup mortgage and was interviewed by an advisor who was a mere child. I explained upfront what I wanted the money for and she said We couldn't lend in those circumstances, but if you decided to stay in the house and use the money for home improvements we could lend it, do you think you might change your mind about the purpose of the loan? So I said Yes I suppose I might, and she filled in a new form and we all signed it and they gave me the money. Makes me shudder to think what might have happened if I hadn't found a buyer, but I did, and I got away with it. It's not surprising that that particular bank needed bailing out a few years later.
 

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Banks find it very difficult to lend money now, with much tighter rules and restrictions.

We had plenty of equity ( 2 mortgage free houses) and my bank couldn't find a way to put a deal together for what we wanted.

Used a broker in the end which sorted things out, was cheaper and the broker got paid by the lenders! Sure it would be the right way to go!

PaulW
 
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