Bridging loan experts
Bridging loans are a short-term finance solution, developed very specifically for “bridging the gap” between making a purchase, and having the funds to complete that purchase without financial assistance. These loans can be used in a number of ways, including to:
- buy a property, before selling your current property
- pay for renovation work
- buy land for development
- purchase an uninhabited property
A Bridging Loan is still a loan, meaning you will be required to pay back the money you borrow, and there will be a rate at which you are expected to pay back the money.
These loans are not common from high street banks, but are often available through mortgage brokers and advisors (such as ourselves) and require rigorous checks on credit history before being accepted for a Bridging Loan.
While a bridging loan may appear as a simple solution to buying a house before you’ve sold, there are several factors which you must be aware of. Securing a Bridging Loan can be fast, but can still take several weeks to complete, especially when managing difficult circumstances.
When using a Bridging Loan to purchase a house before selling, it is likely that you will own two properties for a period of time. If it takes a long time to sell the first property, to if you are unable to sell it entirely, you will still be expected to keep up your repayments on all outstanding loans.
A Mortgage Advisor is well placed to help you when planning a purchase or renovation. As Independent Advisors, we are able to support you through the process of buying a property and deciding if a Bridging Loan is the best solution.
We are also able to find the Bridging Loan for your circumstances. This process includes a free, no obligation consultation to understand your circumstances and conduct research to make the best match.