Use A Bridging Loan To Secure Your Dream Home

Basically, a bridging loan works best when you are purchasing a new residence and plan to make a down payment with the proceeds from the sale of your current owned home, but your home will not be sold until after you have bought your new, dream home. A bridging loan allows you to take equity out of the current home and use it as down payment on the new residence. Of course a bridge loan lender will want to be sure that you can sell your home, but as long as that is inevitable, they will be happy to lend you the upfront, short-term loan.

This means, with the help of a bridging loan, you can jump the chain and not worry about how quickly you can sell your home. As well as avoiding heartache, you will also avoid lost fees, lost profit from a hastily sold home and lost money on a hastily sourced mortgage. With a bridging loan, you have time to get the best price for your home, you will lose no unnecessary money in the move and you can find the right longer term loan at your own pace.

But a bridging loan is not without its pitfalls. They are costly – a short-term loan carries more risk, so lenders price for that risk accordingly. There is also the risk that you cannot sell your existing property and you could be saddled with two large loans – your original mortgage and your new bridging loan. Also in this tough environment, there are less bridging loan lenders and there are less borrowers who would be eligible for a loan of that kind.

So you need to get a mortgage adviser who can help you at every step of your house buying and bridging loan process. You need an adviser who can find you the right short-term loan that you can afford, one who can help you make plans for your future property and one who can then help you pay off your bridging loan with the proceeds of your sale. And then, of course, you will need the mortgage adviser again when it comes to taking out a new mortgage on the dream home.

Using a bridging loan to secure your ideal home can be a tough process. It can be risky and if not done right it can cost you dearly. That’s why, if you are determined to use a bridging loan to get the house you have always dreamed of, make sure you use an experienced mortgage adviser who will help you avoid any bridging pitfalls.

Bridging Loans are not regulated by the Financial Services Authority.

Bridging Loan Enquiry Form

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