Bridging finance is a type of short term loan which is used to bridge the gap of finances between buying your new home and selling your old property. Bridging loans can help you to purchase the new property, whilst waiting for the sale of the current one to go through.
Bridging loans are a short-term loan, which essential can bridge the gap in your finances, so that you can purchase your new home, whilst waiting for the sale of the old property go through. The finance allows you to complete the purchase of the new property, before you have the finances from selling the old home. There are many different circumstances where it can be needed, for example if there is an interruption in the property chain, and you could lose the new property if you don't move quickly. Bridging finance can be setup in as little as a few weeks, and it helps to give you the perfect solution to acquiring the funding needed for the purchase.
There are a wide range of different situations which mean you may want to buy your new dwelling, before you have sold the old one. Bridging finance is utilised to quite literally bridge the gap in the finances between the sale and the purchase. Bridge loans can be used as a short term loan for a variety of reasons.
The financing can also be accessed by landlords or property developers, who are purchasing a property at an auction. In this kind of circumstance, often the property will need to be paid for quickly, which means the purchaser can still go ahead with the sale, even if their mortgage isn't organised.
Bridging finance is also very beneficial if a property is considered 'unmortgageable' and it must be considered habitable, to be able to get a mortgage. Other options include:
Our team know that it's sometimes mind-boggling when you are trying to find the right bridging loan for your needs and trying to understand the process as a whole. There are a variety of different bridging lenders available on the market, all of whom provide different solutions and offer different rates. When there are so many options available, we would highly recommend that you utilise a FCA regulated broker to find the right options for you.
If you would like to contact our team today, we can discover your personal needs and then help you to find the best deal and rate for you. We can also give you general guidance on other financial products, such as mortgages or insurance.
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One of the many reasons that bridging loans are a great option is that they can be arranged quickly. Once we have found the perfect deal for your specifications, your application can then be approved in as quickly as 24 hours. Following this, you should receive the funds within two weeks.
Interest rates on bridging loans are charged on a monthly basis but are often payable as a lump sum at the end of the term of the loan. It's possible to borrow up to £5 million pounds, depending on the equity you have but generally the amount you borrow is capped at 75% of what you're securing it against. It is, however, possible to secure the bridging loan against multiple properties, which can help you to get the amount of financing you require. Unlike mortgages, bridging loans are not based on your income.
Bridging is a short-term financing solution, which helps you to get ahold of funding very quickly. The terms of bridging loans is generally less than a year, but longer terms are available.
At Transparent Mortgage Services, we take pride in completely independent brokers, who work throughout the UK. We have a team of experts who are regulated and authorised by the Financial Conduct Authority (FCA) and we have many different customers across Worthing and the surrounding areas. If you need advice on getting a bridging loan in Worthing, or other financial products, contact our team today.
