Bridging Loans

Thanks for dropping by! Feel free to join the discussion by leaving comments, and stay updated by subscribing to the
RSS feed:

If you’re having a home-selling nightmare, a bridging loan may be the answer but be very careful.

You have fallen in love with your ideal home, and your offer has been accepted. There is just one snag – you can’t get shot of your old house quickly enough and the deal is at risk of falling through. A bridging loan may be the only way to keep the deal on track.

But be careful before you dive in. These loans are expensive and are usually considered to be a last resort.

If a bridging loan can tide you over in the short term then the extra expense may save you from losing money already spent in the purchase process, as well as reducing stress, if you do it for the wrong reasons you may end up in serious financial difficulty.

For buyers with an imminent purchase but a problem with their own sale there are two options – taking on another mortgage or a bridging loan.

But beware, both will leave the borrower paying off two loans at once, and experts say bridging loans should not be used as a way of simply trying to beat property chain problems.