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Bridging Loans
A Bridging Loan is an interest-only, short-term loan, which is secured on land or property 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.
A bridging loan can be useful for a number of purposes:
1) To help buy a new property before you have sold your existing one.
2) If you need to act quickly to buy a new property.
3) To act quickly to refinance or release additional funds from an existing property.
4) To help with refurbishing, converting or developing a property.
5) To purchase a property at auction.
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 click here for independent mortgage advice.
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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