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Bridging Loans

 
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Most people when buying a new home will be involved in a chain, with a buyer lined up for their home and a house that they are looking to buy also lined up. This can be a very stressful time as the contracts have yet to be exchanged and so the purchase of your new home is not secure – if someone in the chain pulls out you may find that you are unable complete on your sale and so lack the money needed to purchase your new home. Bridging loans are designed for situations when the sale of your house has been delayed, giving you the money you need for the purchase.

Finance:

A bridging loan is secured on the property that you are selling, and will provide you with the money you need to complete on your purchase so keeping the chain in place whilst you wait for your buyer to complete. Bridging loans are short term financing, aimed at bridging the gap between buying your new property and selling your existing one, they can be extremely useful and prevent you from loosing out on your dream home, however you should be aware that they charge relatively high rates of interest and so should be paid off as soon as possible.

Further Information:

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