A bridging loan may be necessary to cover the financial gap when buying one property before your existing one is sold. This finance is secured against the existing property (utilising equity) and the new property being purchased.
Bridging loans are available from a number of different lenders, including banks, building societies and other financial institutions.
Buying and Selling Property
Getting a Bridging Loan
When you take out a bridging loan, you will be asked to provide security for the loan in the form of a home or other asset. The loan is typically for a short-term period, and you will be required to make regular repayments.
Bridging loans can be used for a variety of purposes, including:
– buying a new home before selling your old one
– renovating your home
– investing in property
If you are thinking of taking out a bridging loan, it is important to compare the deals on offer from different lenders. You should also seek professional advice to make sure that a bridging loan is the right option for you.