Bridge financing - old house as collateral

Hello,
our last house purchase was 25 years ago ... back then everything was still done on site or with real estate agent support.

Now we are facing the purchase of a plot of land (100k), on which a prefabricated house provider will then build the house (450k).

Our current house has a market value of 500k, cash assets 120k, net income together over 5k/month.

The plan is to sell the current house after moving into the new house (in at most 2 1/2 years).

With which type of "loan" can this period (until the existing house is sold) be best and ultimately financially most advantageous "bridged"?
Land charge, mortgage, construction loan?
I have tried various online calculators, but these wanted at least 5 years term, or a max. loan of 100k, or all sorts of data to finally arrange a consultation appointment ...
Under which keyword should I best search for this type of "bridge financing", "interim period"?

Thanks for tips and help,
Martin

What type of "loan" is best and ultimately financially most favorable to "bridge" this period (until the existing house is sold)?

Bridge financing

Land charge, mortgage, construction loan?

The first two are only securities for a loan. A construction loan can be anything.

Under what keyword should I best search for this type of "bridge financing," "bridging period"?

Bridge financing is the keyword. But you cannot get it online. That is why you will find nothing. Only through a broker or directly at a bank.
This can then be a loan with a variable interest rate or with a short fixed interest period. Possibly with a land charge as security (if possible), since then it is cheaper. Usually, however, it is unsecured with assignment of the purchase price claims from the still to be completed purchase contract.

Due to the extraordinarily favorable interest rates, a "standard" 10-year construction loan with advantageous special repayment conditions could be a simple option. If the new house serves as collateral and not the existing one, you can sell the existing house at any time and make use of the special repayment to the extent that seems sensible at the time. This way, you retain great freedom of action.

Due to the exceptionally favorable interest rates, a "usual" 10-year mortgage with favorable prepayment conditions could be a simple option. If the new house serves as collateral and not the existing one, you can sell the existing house at any time and make use of prepayments to the extent that seems sensible at the time. This way, you retain great flexibility.

However, when I read the OP's numbers, he ultimately does not need any financing at all, as everything can be paid from cash/sale proceeds. Therefore, a normal mortgage with prepayment does not make sense. There are also no particularly large prepayments possible.

I understand, so either look at the terms or set it up in parallel. With the current interest rate, this is at least our approach, it is quite attractive. And for the [Vollkaskoforisten] - no, there is no guarantee that it will pay off).

I see 3 options:

* bridge financing which can be very expensive. Advantage: redeemable at any time
* sale now and simultaneously renting in your own house (probably reduces the sale price)
* construction financing with a short fixed interest period of 3-5 years. Here you would have leeway due to the construction time and could redeem without costs at the end of the term