What is Bridging Finance?
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.
What are Bridging Loans Used For?
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:
- Purchasing properties at auction
- Purchasing land and the materials to build a property
- Renovation of properties
- Downsizing your home
- Payment of a tax bill
- Buying a retirement property
Bridging Loan in Worthing, West Sussex
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.