Why a Bridging Loan?
We did find another beautiful house so the story has a happy ending but is there anything we could have done to get that first house? The answer, had we known it at the time, would have been a bridging loan. Bridging loans are short-term loans offered by commercial lenders to borrowers for a specific purpose. They can range in time from two weeks, for a very short loan, to up to three years for commercial bridging loans. Homebuyers who have not yet sold their property and wish to buy require these bridging loans. Interest Rates The interest rates are probably higher than for your typical mortgage but this is because of the added flexibility and convenience you have from the lender. There will also be set up fees involved. However, they may work out at significantly cheaper than some of the alternatives such as renting accommodation. There will also be many situations in which the price will be well worth paying if it means getting your dream home. You should always shop around before a
