Bridging Loan Process

 

   One of the most common examples of when a bridging loan is required is the buying and selling of property: your new property is ready for purchase, but your current one is still awaiting a sale. By using a bridging loan you can be sure of purchasing your perfect new property, while not having to wait for your current dwelling to sell. In addition, the loan can be secured against your existing property and/or the new one (this assumes that you have sufficient equity in your current property).

   There are a number of types of bridging loans available depending on the situation. These range from bridging loans for a commercial property or plot of land – i.e. for development and build-out, to a bridging loan for property overseas or to avoid repossession of your home. In general, the most common bridging loans are for the purchase of a new property while the current one sells, and in this category there are both ‘open’ and ‘closed’ versions of the loan. In simple terms, the open version has no set date for the sale of your current home and the subsequent repayment of the loan (and is therefore less secure), whereas the closed version has a set date for repayment of the loan, which is usually the planned date of sale for your existing property.

   To speak to an adviser about your bridging loan needs or to get a simple, easy to understand quote, please contact us.