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House Bridging Loan – Your Top
9 Questions Answered
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A house bridging loan is an advance that is available when you need money to purchase a new home because the sale of your old home has not yet been finalized. The credit is meant to bridge the gap between buying a new home and selling the old one. The advance is considered a short-term credit and is usually paid back within a year or less.
1. Who Can Get One Of These Advances?
This type of credit is available to any UK resident over the age of 18
2. What Is A Closed Bridging Loan?
This is a credit that is based on the current sale of property. This means that there is a contract pending on the sale, however, due to timing, the contract did not close before the new purchase date.
3. What Is An Open type of this Advancement?
An open advancement is a credit where there is no pending sale on the existing property yet, however, there is intent to sell. This may mean that the property is up for sale and has not yet been sold or that there are offers that are still being negotiated.
4. How Much Money Can I Get With A House Bridging Loan?
The amount of money you can borrow varies greatly but generally is limited to 85% of the property value.
5. Do I Need Good Credit To Get This?
The short answer is no. Typically, the advance is determined by the mortgage and the credit and work history are not factors. However, this can determine the interest rate you are charged and depending on the credit terms requested, the lending company may need to verify credit and work histories.
6. How Long Does It Take To Get A House Bridging Loan?
The advance is designed to be obtained quickly. The entire process, from application to receiving cheque, usually takes no longer than a week, with many companies offering 2-day service on simple bridging loans.
7. Is The Application Process Easy?
Yes. The application process is usually streamlined. Much of the information may be obtained from the mortgage. Many lending companies offer online applications through their web sites.
8. Are There Any Other Fees?
House bridging loans are considered specialty advances and as such don’t have the usual points system. Instead, there are usually some administrative and processing fees that need to be paid.
9. What Happens If I Can’t Pay It Back On Time?
Always take out the credit for the longest time you can. This helps to ensure that you will have the funds from the sale of the existing property to repay the credit. Some advances can be extended for a fee. Since the credit is secured against the value of the property, the lending company can repossess the home for non-payment.
Bridging
Loans
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- Terms
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| Who's Suited |
- Purchasing
property at auction.
- Property refurbishment or conversion.
- Chain breaking mortgages.
- Homeowners who have been or about to be repossessed.
- Funds required within days not months.
- Short-term finance for business purposes.
- Commercial property purchase and refinance. |
| Features |
- 100% LTV
Available.
-Market leading rates from 0.75%.
-1st charge or second charge equity release. |
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