—
A broken property chain can be nightmarish at the best of times. Sadly, it is something most buyers and sellers have no direct control over.
Finding the home of your dreams can take months (if not years), followed by the long and drawn-out process of completing the transaction. But what if you find your dream home at a price you can afford, while still looking for a viable buyer for your current home.
Worse still, what if the buyer you have lined up for your current home changes their mind, or simply disappears at the eleventh hour?
This is where the potential risks of being reliant on a property chain become evident. It is also where the limitations of conventional home purchase products (mortgages) become painfully clear.
Fast-Access Bridging Finance
Once available exclusively to businesses and property developers, bridging finance can now be accessed by private borrowers from all backgrounds.
Bridging finance differs from a conventional loan or mortgage, in that it is designed specifically to bridge a temporary financial gap.
In this scenario, a bridging loan can be taken out by a homeowner to purchase their next property, and to tide them over until their current home sells. The loan is secured against their current home, the funds raised can be used to buy their next home for cash and the full balance is repaid following the sale of their former home.
Just a few of the benefits of fast-access bridging finance for purchasing properties include:
- Quick Access to Funds – With all the necessary paperwork and documentation in place, a bridging loan can be authorized and accessed within a matter of days. Bridging finance effectively turns the customer into a cash buyer, giving them a major advantage over rival bidders.
- Flexible Eligibility Requirements – Bridging loans are nowhere near as strict as conventional mortgages where credit checks, employment history and general financial status are concerned. Even with a history of bankruptcy, it is still possible to qualify for a competitive bridging loan.
- Low Rates– Interest applies on a monthly basis with bridging finance, which can be as low as 0.5% or even less. Where a bridging loan is repaid as promptly as possible, overall borrowing costs can be kept to the bare minimum.
- Simplicity– With the help and support of an experienced broker, an affordable bridging loan can also be surprisingly quick and easy to arrange; certainly less complex and time-consuming than a conventional loan or mortgage, which could take several weeks or months to underwrite.
Getting the best deal on a bridging loan to purchase your next home begins with enlisting the support of a specialist broker. Your broker will ensure your requirements are met with a facility you can afford, sourced from an extensive panel of specialist lenders across the UK.
For more information on any of the above or to discuss the potential benefits of bridging finance in more detail, call anytime for an obligation-free consultation.
—
