Caught in the gap between selling one home and buying another?

It can be a tricky situation but a bridging loan is a cost-effective way to tide you over.

A Bridging Loan is a type of loan that can be used to resolve a temporary cashflow problem that may occur when buying a property or business.

A prime example of when you might need a bridging loan would be if you're poised to buy a new home but are let down on the sale of your existing one.

To secure your new home, before it goes to the competition, you could use a bridging loan.

There are two main types of bridging loan: the 'closed' bridge and the 'open' bridge. A closed bridge is only available to homebuyers who have already exchanged on the sale of their existing property. Very few sales fall through after exchange, so lenders are happy to offer closed-bridge financing.

An 'open' bridge is taken out by buyers who have found their ideal property, but may not have put their existing home on the market.

A bank will ask lots of questions and want supporting information. It will also insist on you having lots of equity in your existing property.

Bridging loans are available from a wide range of brokers and lenders who can arrange a fast finance decision for property buyers.

So if you are looking to buy property as an investment, buy an overseas property or just need fast funding to grab that great auction bargain, consider a bridging loan as your ideal solution!

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