Bridging loans are aimed to help people secure the purchase of a property before selling their existing home by offering them short-term access to money at a high-rate of interest. Bridging loans gives you access to large funds so you can pay off your property purchase while selling your existing home. As well as helping home movers when there is a gap between the sale and completion dates in a chain, this type of loan can also help someone planning to sell-on quickly after renovating a home or help someone buying at auction.
Types of bridging loans:
You can choose between a closed bridge loan and an open bridge loan:
- A closed bridge loan requires you to know exactly how you’ll be paying off the loan. This means you’ll be able to tell the lender what funds you’ll be using to pay off the loan from the outset. Closed loans are usually settled within a few months.
- An open bridge loan usually doesn’t require an exit plan and is often used to get funds for an urgent transaction. As you won’t have to provide a detailed plan of how you’ll be settling the debt, open bridge loans can be a time-effective solution. You’ll usually have up to a year to repay your debt.
Get in touch today to find out more about bridging loans and a specialist adviser from our team will contact you to assist further.