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Bridging Loans
A Bridging Loan is a temporary, short-term loan, which is secured on land or property (eg your existing home) and is therefore a type of mortgage. If you already have a normal mortgage on the property, it may still be possible to arrange a bridging loan as a second mortgage, provided there is sufficient value in the property to provide security for the extra loan.
Bridging finance can be a useful source of cash for a number of purposes:
* To help buy a new property before you have sold your existing one.
* To buy a property for renovation or conversion and quick resale.
* To refinance or release additional funds from an existing property.
* To finance the purchase of a second home abroad.
* To enable you to purchase a property at auction.
Bridging loans are usually arranged for a limited, fixed period of around three to six months and the entire loan is then repaid in full, with the agreed interest.
You can find bridging loan finance by contacting lenders direct, or you can try approaching a mortgage broker, independent financial adviser, solicitor or accountant. Alternatively, there are also specialists whose primary business is arranging bridging loans.
For further information and assistance with bridging loan finance click here for independent mortgage advice and quotation.
NOTICE: A mortgage is a loan that is secured on your home and you also need to think carefully before securing any other debts against your home. Your home could be taken away by the lender and sold if you do not keep up the repayments on the mortgage or any other debt secured on it - if you are in any doubt, seek independent professional advice. These notes are offered as a general guide only and do not constitute mortgage or legal advice.
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