The transition period between selling your old property and purchasing a new one can be tricky to balance. In a perfect world, you would receive the money from the sale of your previous home right on time to pay for your new home. Things don’t usually go so smoothly when dealing with property transaction.
Moving is stressful enough on its own. Trying to juggle two properties at the same time and the added money worries can be too much to handle. Finding a good solution to ease the pain is always a good idea.
This is where a bridging loan can be used to secure your finances while in the process of moving. With this loan you don’t need to worry about how you will afford to pay for any additional expenses such as down payments or closing costs.
The first thing a lending organization will do is check up on the property you are selling. The value of the property is considered, as well as the probability of finding a buyer to sell it. These factors will help determine the amount you can borrow, the maximum repayment period and the interest rate for the loan.
One of the main benefits of bridging loans is how eligibility is determined. Most bridging loan providers aren’t too concerned with your current income or how much debt you have. The focus is really on the property involved. This allows many more people to secure a loan through this method, who couldn’t otherwise get a different type of loan to pay for their short term expenses.
In most cases you won’t have to make any payments in the initial stages of the loan. The lender will allow you to receive the money from the sale of your old property and then simply pay for the full amount of the loan in one payment. However, it is very important to remember that interest will continue accrue even in the period when payments aren’t due. So overall this makes bridging loans a more expensive lending option, but it is usually easier to get in the first place.
Most financial institutions, as well as private lenders will offer these short length loans. Though getting a good deal from a general loan provider can be tough. Just like most kind of shopping, some of the best deals can be found online.
You can get a bridging loan for a current (or new) development site, or just a regular bridge. And our specialist lenders can offer you more choice and flexibility when it comes to the terms of a loan. The online site gives you the benefit of quick decisions on your application and the lending solution will be perfectly suited to meet your particular needs.
Even if you have a poor credit rating history, your case will still be considered and the best possible offer made. The streamlined application process means you will have your answer within minutes.
Always check through all the details before you commit yourself to such a loan. Understand the benefits and the risks. These loans are fairly short, so one a decision has been made, things move pretty quickly.