What is a bridging loan – Many people and when selling that Home can find themselves in a state of financial limbo during transactions, to solve this problem lenders came up with bridging loans, a bridge loan ” Bridges” and the gap between selling your old house and buying your new home.
Bridge loans are secured
Bridging loans are cheaper because the loan is secured in your property whether it be your new home or your old home, even if you sell your old home without buying the new one you are assumed to have capital amateur disposal to repay the loan.
Short term loans
Bridge Loans are usually set at a term of an no more than one year and generally offer a favourable rate of interest. Bridging loans are widely available for most homeowners including people who have county-court judgments (CCJ’s), mortgage arrears, current bankrupts and people with individual voluntary arrangements (IVA’s)
Residential bridging loan uses:-
- To raise the required finance for the undertaking of renovation or repairs until the mortgage can be agreed.
- Temporary Loan to enable the purchase of a Un-mortgagable property
- To enable the fast purchase of a property that may be seen as an investment, until a standard mortgage is acquired
Other Options for these types of loans are…
- Personal bridging loan
- Fast UK bridging loans
- Bridge term loans
- Commercial bridge loans