In an ideal world, selling your current home to buy your next dream property would be a straightforward matter. It can be quite the contrary. Even in today's competitive housing market, it has become the norm for buyers and sellers to find themselves trapped indefinitely in complex property chains.
With the help of a bridging loan, it is possible to opt out of the traditional property chain entirely. To learn more about buying a new home before selling your current property, contact a member of the team at UK Bridging Loans today.
If you have built up sufficient equity in your current home, the answer is yes. Bridging finance provides homeowners with the opportunity to access the equity they have tied up in their properties, which can subsequently be used for any legal purpose.
For more information on any of the above or to discuss your requirements in more detail, contact a member of the team at bridgingfinance.com today.
Bridging loans can be used for a variety of purposes, with the following being the most common:
Here at bridgingfinance.com, we take customer satisfaction very seriously. That is why we go the extra mile to provide the best service possible to all of our clients.
Every member of our team is highly trained and experienced in property and specialist lending products, ensuring our clients get the best products at the best rates.
We have access to many specialist lending products that can be tailored to each individual’s needs. We can offer flexible, fast, and cost-effective loans for clients with specific requirements. Deal directly with the lender; no middleman!
Our track record speaks for itself through our thousands of satisfied clients. Our experience and unrivalled customer service mean that we have many returning clients with whom we have built a long-lasting relationship.
We use the latest technology to ensure simplicity, speed, and ease for our clients, as well as highly trained staff to ensure everything runs smoothly.
We can tailor loans to suit whatever property funding needs our clients may present. With access to a wide range of lenders, we are able to offer specialist loans at competitive rates.
Bridging loans work in a similar way to conventional mortgages but are significantly simpler and shorter-term in nature. The loan is secured against your current home, enabling you to borrow against the amount of equity you have built up in your property. You can then use this money to buy your next home, wait for your previous property to sell, and use the funds raised to repay your bridging loan.
Yes, for the simple reason that you are no longer part of the traditional property chain. Most homeowners cannot relocate until they have secured the sale of their current home. In the meantime, the property of their dreams may have slipped through their fingers several times over.
With bridging finance, you effectively benefit from the spending power of a cash buyer. A brief overview of how bridging finance can help homeowners opt out of property chains:
Typically charged at a rate of around 0.5% per month, bridging finance can be highly cost-effective when repaid promptly. It can also be a far more affordable facility than any comparable loan or mortgage and could provide access to the property price discounts typically reserved for cash buyers.
If you have not yet entered into a formal agreement with your lender, you will be able to walk away without facing any fees or penalties. But if the bridging loan has been arranged and formalised by the time you sell your home, costs may be incurred to terminate the agreement early.
It depends entirely on the terms and conditions of your bridging loan agreement, which may or may not include early exit fees. Assessing the flexibility of a bridging loan contract prior to signing it is therefore important, so you know where you stand in all possible scenarios.
Bridging loans are typically issued up to a maximum LTV of 85%, depending on the applicant's requirements and their financial circumstances. Some lenders cap their maximum loan amounts at 75%, or even 65% for certain applications.
This means that you can borrow up to 85% of the total value of the assets you use as security for your loan. If you own a 300,000 GBP home but have only repaid 100,000 GBP on your mortgage, you have 100,000 GBP in equity and could therefore borrow 85,000 GBP (at 85% LTV).
All bridging loans are bespoke agreements negotiated between the issuer and the borrower. It may therefore be possible to borrow beyond this maximum 85% LTV in special circumstances, depending on your requirements for the loan and your proposed exit strategy (when and how you intend to repay).