If you find yourself in a position where you need to purchase your new property but have not yet sold your old property, then you will need some financing to bridge the gap to give you the time to sell. These are known as bridging loans, or bridging financing because they bridge the gap so you can complete on your new home before you old home has sold.
Bridging Loans in London
This type of loan is a short-term solution and as such often has a much higher interest rate, but it can be the financing your need to bridge the gap before the sale of your old property is finalised. Missing out on your dream home or property investment opportunity for the sake of a few weeks is not an option for many people so these bridging loans can be the answer if you are eligible and understand the type of loan you are agreeing to.
Bridging loans can also be known as caveat loans, are useful in many different types of property purchase scenarios including having to move home quickly as you are being relocated for a new job or perhaps you are a property investor and you must complete on a sale or lose the deal you wanted. Because of their higher interest rates and higher administrative fees those considering this type of loan do need a clear end date and exit in mind from the loan or the costs can increase quickly. For those that need a short bridge this type of loan works well and gets them where they need to be, it however is not a replacement for traditional lending.
Bridging Finance Options
If you need a bridging loan working with an expert mortgage advisor is the best way to understand the type of loan you are agreeing to, the rates and fees associated with it. As with every type of financial product there are many different lenders willing to agree to bridging loans if you meet their criteria and a mortgage advisor can match your personal circumstances with the lenders available to get you the right deal at the best rate for you.
Mortgage Advisor London
The team at Rosebank Mortgage Brokers are experienced in supporting many types of clients buying property in London and as such can advise you on the best way to finance your property purchase and this includes bridging loans.
If you think this type of finance is what you need then talk to us today to discuss all of your options.