Have you spotted your dream home but now need to sell your own house? Not only can we help with your sale but we can also introduce you to someone who can help with finance. If time is tight, a bridging loan might be your best bet. But what is a bridge loan? How exactly does it work?
A bridge loan, or bridging loan, works by literally bridging the gap in your finances. It is a short-term loan designed to help buyers secure the property they want. The most common scenario where people take out bridge loans is when they want to buy a new home, but they have not yet completed the sale on their current property.
This type of lending helps you move forward by giving you access to funds, quickly, when you need it. It ‘bridges the gap’ between selling the old property and buying the new one.
Features of bridging finance:
- Bridging loans can be arranged quickly.
- They can be used as a short term alternative to a traditional mortgage on any type of building, or for development or refurbishment projects that do not qualify for a traditional mortgage.
- The cost of borrowing tends to be higher than a traditional mortgage.
Using Bridging loans can be complicated, and an exit strategy should always be in place – we would always recommend speaking to an expert who can help.
If you would like us to introduce you to our tried and tested experts please just email enquiries@patonandco.com
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