AUG 29, 2013

Can a bridging loan help with your house purchase?

If you don’t have the cash available to secure a property, a bridging loan is a great way to get the financial help you need without applying for a bank loan or delving into your savings.

But since bridging loans are financial products, you really need to understand exactly what a bridging loan is, be confident with how they work and know when it’s appropriate to use one.

So let’s take a closer look at bridging loans, and find out how they could help you with property purchases.

What are bridging loans?

A bridging loan is a type of loan that’s usually taken out when the money from the sale of an asset is tied up. They’re common in situations when the money from an asset sale is expected to arrive in an account but isn’t immediately available, and the money is needed for something else.

Since they can be set up very quickly, they’re particularly useful for when you need immediate finance, and they’re a simple and effective way of solving property-based finance problems.

Here at Bridge Bee, you can even track the status of your application online, so you’ll know exactly where you stand through each stage of approval.

Property chain problems

If you see a property you like, it pays to act quickly. So if you don’t want to miss out, but don’t have the available funds, a bridging loan can be extremely useful and allow you to purchase at short notice.

Let’s say that you’re buying a new home and are required to make a down payment on the new property. What happens when the funds to secure this new property are tied up with your current home, which has not yet sold?

You can get the money you need with a bridging loan, which is then paid off once the sale of your current property has gone through and the funds are no longer held up.

Created on 29th August 2013
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