What is a bridging loan?
If you are in a chain, where you are buying a home at the same time as selling a home, it’s possible that you’ll be put in the situation where you need to complete your purchase, but the funds from your buyer are not present. At this time, the vendor may threaten to accept someone else’s offer unless you complete at a certain date. Without the proceeds from your home’s sale you would have nowhere to turn. This is where bridging loans come in. Bridging loans could be for a substantial sum, from £25000 to cover a shortfall to up to a few million pounds to fund the whole purchase. The amounts are borrowed for periods from a week to up to six months. Product providers like these sorts of loans because they are meeting their customers’ needs. But think about the word ‘needs’. Customers get bridging loans at times when they really NEED them, and opportunistic product providers can take advantage of this. Bridging loans are readily available, as the fact that they should be paid back very qui
