A bridging loan is a type of loan designed to help cover a financial gap between buying one property and selling another. Bridging loans provide a fast, flexible and cost-effective option for those looking to purchase a new property in a hurry, but do not have the necessary funds available.
Bridging loans are typically used by those who require quick access to funds to purchase a new property, while they wait to sell their existing home. These loans are usually provided for a short period of time, usually between one and thirty-six months, with the loan amount usually based on the value of the existing property that is being sold along with the value of the new property being purchased.
Bridging loans are a great option for those looking to purchase a new property quickly. They are also a great option for those who are looking to purchase a property that is being sold off-market.
When applying for a bridging loan, borrowers should be aware of the fees and charges associated with the loan. These can include arrangement fees, legal fees, valuation fees and as well as the interest rate charged on the amount borrowed. It is also important to be aware of the repayment terms of the loan, as the loan will need to be paid back in full by the agreed repayment date.
Overall, bridging loans offer a fast and flexible way to purchase a new property without having to wait for the sale of the existing one. By applying for a bridging loan, applicants can benefit from a flexible repayment period and access to much needed funds.
