Should you take out a Bridging Loan? How is this type of finance used and what loans are available?
Should You Take Out a Bridging Loan?
That’s a question every homeowner caught in a tender situation has asked. Do you wait and risk losing the home you want to purchase whilst you wait to sell your house, or do you secure your dream home and wait for completion to go through on the sale of your house bridging loans & Finance can help you complete where a mortgage would not help this type of loan offers a short-term solution.
The answer really depends on your situation. However, bridging finance does help thousands of borrowers to fill the void between purchase and sale every year.
Furthermore, with Brexit creating economic uncertainty, some areas of the UK have felt a slowdown in the housing market. As a result, some properties are taking longer to sell which means buyers have missed out on homes they set their heart on.
If you do take out a bridging loan and don’t have any luck selling your house, you could face expensive repayments. The longer the term of the bridging loan, the more you pay in interest.
Having said that, there are a huge number of firms, both large and small, that offer bridging finance. As a result, the terms of the contract are more favourable to borrowers.
In the last year, we have already seen more lenders offering loans for a longer period in order to stand out from the competition.
Exit Strategy
The important component to consider when taking out a bridging loan is the exit strategy. This is the provision in the agreement that determines the length of the term the loan has to be paid back by.
It is essential that the exit date is realistic. Subsequently, there are two types of bridging loan available; closed and open.
Easy Bridging Loans can arrange your loan with ease and will guide you through both the choice of loan and all of the processes that are associated with taking a bridging loan, because we specialise in this type of finance and nothing else, we will always have the answers to any problems that could be encountered along the way.
Get in touch now to discuss your requirement as professionals in this field and know the industry inside out, call us today or complete our online form to get things started.
Get your rates
Easy Bridging Loans a trading name of Top 10 finance Ltd is authorised by The Financial Conduct Authority (FCA) no 725234 The FCA Think Carefully before securing debts against your home. Your property could be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. We are registered and comply with the Data Protection Act (1998). Registration No: Z2861884 Company registered in England number 06261373. Privacy Policy
