BRIDGING LOANS
Bridging loans can be useful for lots of reasons such as helping you buy a house if your chain breaks down, if you’re downsizing but want to buy before you sell, or if you’ve bought at auction but can’t get the funds ready on time. The property may also not be in a condition for a standard mortgage.
We explain what bridging loans are, when they are used and most importantly how you intend to pay them off. (Known as the exit)
How do Bridging loans work?
This is a loan secured against the property you wish to buy (and sell if applicable)
Only designed for short terms (generally upto 12 months but can be longer).
If there is an intention to live in the property it will be regulated.
If it is for business purposes (like a BTL) it will unregulated.
Usually replaced with a mortgage or by selling the security.
Interest can be retained or serviced
Speak to one of our specialist advisers to see if this is the right solution for you.