Upsizing
Bridging Finance
Bridging finance has a reputation for being expensive, however this needn’t be the case.
Certain lenders, typically building societies and private banks can offer terms at rates similar to a normal mortgage.
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You have found the property of your dreams, the mortgage looks affordable and the whole family is on board with the idea. The only issue is – you haven’t sold your home and until you have your home under offer or sold the estate agent and vendor are not interested.
A bridging loan might be the answer, by offering your existing home as security for a short-term mortgage, known as a bridging loan, you may be in a position to raise the required deposit to make up the deposit for your onward purchase.
Bridging loans can be very useful, however, there are some elements which will need due consideration.
Lending term
Many bridging loans will be available for a maximum of 12 months, so you will need to ensure you have an effective plan for repaying the debt.
This could be the sale of the property or a refinance to a longer-term mortgage, perhaps as a second home or buy-to-let mortgage.
The cost of a bridging loan
Bridging finance has a reputation for being expensive, however, this needn’t be the case.
Certain lenders, typically building societies and private banks can offer terms at rates similar to a normal mortgage.
The key is ensuring your broker understands your circumstances and has a wealth of contacts in the bridging marketplace.
Lending term
Many bridging loans will be available for a maximum of 12 months, so you will need to ensure you have an effective plan for repaying the debt. This could be the sale of the property or a refinance to a longer term mortgage, perhaps as a second home or buy to let mortgage.
The cost of a bridging loan
Bridging finance has a reputation for being expensive, however this needn’t be the case.
Certain lenders, typically building societies and private banks can offer terms at rates similar to a normal mortgage.
The key is ensuring your broker understands your circumstances and has a wealth of contacts in the bridging marketplace.
Which are the best lenders for a bridging loan
Specialist lenders, building societies and private banks are best suited to offering this type of finance. The offerings can vary significantly in cost, loan amount and timing to arrange.
Speak with an expert
We obtain the best possible Bridging Finance terms by using our own in-house analysis tools in combination with our extensive database of lender contacts.
We offer a personal service and you deal with an expert who can understand your needs and deliver accurate solutions in a timely manner.
