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Bridging loans for homes

Bridging loans for homes
August 5, 2017 Bad Credit / Bridging Loans / Buy to Let / Moving Home

Bridging finance

Bridging finance provides a speedy, short-term solution for individuals looking to quickly complete the purchase of a property. Bridging loans are unsurprisingly popular with landlords and property developers looking to either fund a property investment, buy to let or development. But, they are also becoming increasing popular with homebuyers wanting to unblock property chains and secure their dream homes.

What are the advantages to bridging loans?

There are a number of potential benefits to using bridging finance for your short-term finance needs including:

  • No credit checks
  • Quick turnaround time (often arranged within 24 hours)
  • Daily interest rate
  • No early repayment charges (on some schemes)

Lenders will however require:

  • A completed application form
  • Proof of address and identification
  • A copy of your buildings insurance policy schedule – We can of course arrange all of this for you!

Is there an alternative to bridging finance?

If you decide that a bridging loan isn’t the right choice for you, then there are other alternatives:

  • High LTV Mortgage: A High loan to Value Mortgage with no early redemption charges, should enable you to make a large repayment without incurring a penalty.
  • Let to Buy Mortgage: If you have found your dream home but can’t wait to sell your current property, or are struggling to get the price you want for it, a Let to Buy Mortgage will allow you to buy your new home, whilst you’re waiting to sell your existing one.

Where can I get a bridging loan?

If you are considering a bridging loan, make sure you have a clear repayment strategy in place first, which might include; getting a residential or buy to let mortgage or selling the property altogether.

As expert mortgage brokers we can help advise you whether a bridging loan is the right solution for your individual needs and circumstances, or if an alternative finance option would be more suitable.

Some of these products are not regulated by the Financial Conduct Authority

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    One Comment

    • James Robinson

      Indeed, the turnaround of bridging is a lot faster than those for a full mortgage. Bridging loans are usually finalised and completed within a 2-week period- compare this to a mortgage process of up to 3 months you may see why people opt for the former. Despite recent events following the Budget Report and the impact on the property market, it appears bridging loans are still on the rise.

      • 11:37 am - September 14, 2017

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