trevour Posted June 2, 2007 Share Posted June 2, 2007 Hi Everyone,We are in the process of Selling and Buying our "maison secondaire", in the hope that we 'Sell' before we 'Buy'!Unfortunately we have found the house we want to buy and it is on the market and within our budget.Does anyone have experience or knowledge of "Bridge Financing" (interest only) offered by respectable finacial institutions, to assist with the purchase, until sale of the existing house takes place. Our French bank is not interested other than a full morgage.Usually the term is short, maybe less than a year, at an affordable fixed interest rate. Security is over the purchased house, offering a loan of 60-80% of valuation.Experience is based on life on another planet! Just a thought! Link to comment Share on other sites More sharing options...
Nick Trollope Posted June 2, 2007 Share Posted June 2, 2007 This is normal in France, is usually approaching 100% and available from the banks, so I don't quite understand your problem (or why you are having a problem). Where are you resident? If the UK, then that may be an issue. Link to comment Share on other sites More sharing options...
Panda Posted June 2, 2007 Share Posted June 2, 2007 HiWe had one (know here as a Pret Relais) but it was not interest only, perhaps it's that element that the banks are not interested in. In order to get the loan we had to have a signed compromis on property 1, again perhaps that's the issue. I believe they will advance some monies if the first property is not under offer but it will likely be less than 50% of the value. You can't really blame them as some houses are taking years to sell at the moment.Incidently the interest rate is really good on the bridging loan (compared to equiv in the UK), our was only 4.5%. In our experience the loan was unsecured but was tied into sale of house 1, the notiare paid the bank directly from the proceeds.Panda Link to comment Share on other sites More sharing options...
trevour Posted June 2, 2007 Author Share Posted June 2, 2007 Hi Nick,We are non EU citizens. We are not French residants or tax payers. Our Bank has us registered as "CCNon- Resident", Hence the problem!Rgs Link to comment Share on other sites More sharing options...
trevour Posted June 4, 2007 Author Share Posted June 4, 2007 Thank you nick and panda for your help. Panda I will go back to my bank branch and try to obtain more information about a 'pret relais'One can only assume this subject is not all that popular or the methodology is not used.Thank you anyway. Link to comment Share on other sites More sharing options...
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