Bridging Loans

Bridging Loans are designed for a short term solution. The loan is usually taken out to solve a temporary cash shortfall.Whether you are  buying a property or business,possibly even paying for a renovation works.

A typical example of when you may need one would be if you want to buy a second property before you've sold your first. A Bridging Loan is normally secured by getting a mortgage on the new property, and taking out a second mortgage on the property being sold. In this case the loan will depend on a positive valuation of the relevant properties.

Lenders will usually allow Bridging Loans of up to 65% of the value of the properties - less any existing mortgage.

As they are more risky for the lender than the usual house buyer's loan, bridging loans are more expensive and should only be used where you are fairly certain to repay them within about 6 months, however it is often prudent to take advantage of a bridging loan because it is short term and does "bridge" the gap between selling and buying a home.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.