Sometimes, there might be a time gap between the due date for a deposit or other payment that you have to make, and funds being available for you to pay it.
A bridging loan offers a short-term finance solution for completing the purchase on a property while waiting for your long-term funding to come through. It might be because of a delay in your mortgage application, or in the sale of your existing house. Alternatively it could be used to fund a purchase to renovate a property that in its current condition is not adequate security for a standard mortgage.
What Happens Next?
You’ll have to take a close look at your finances and be realistic about how long you need it for and how much it might cost. Interest rates are quoted in a different way to standard mortgages and might be close to 1% a month, plus any potential arrangement fee. Know which type of bridging loan you need to get – a ‘closed’ loan has a fixed repayment date, while an ‘open’ loan does not, although you would be expected to pay it off within a year.
Let Us Work It Out for You
We’re looking at the loans market every day, and know exactly when interest rates change, new products become available or new incentives go online. All this, balanced with our knowledge and experience as brokers, means we’re in a strong position to find you the best loan for your circumstances.
What to Watch Out For
Bridging loans can be quite expensive, so it pays to research the market thoroughly, and be prepared for higher than average arrangement fees. Lenders will also want to see evidence that you will be able to repay the loan, using either the money from a house sale or remortgage plan for example.
How We Can Help
We’ll go over the whole process from start to finish, finding the right product for you and making sure you can comply with all the evidence, paperwork and terms of the loan. Yes, there are hoops to jump through, but when you know what to expect, it all becomes a lot smoother.
Ready to Talk It Over?
If you get in touch with one of our local offices, you’ll be able to speak to an experienced, friendly adviser who will be more than happy to go over everything. Getting a loan doesn’t have to be complicated. Let us do the hard work for you. Contact us for an initial chat today.