Bridging Loans

Bridging loans are often needed when one property is being purchased prior to having sold your existing property.

Although the rates are somewhat higher during the bridging period, the reasons for needing this type of finance can be varied:-

The purchaser pulled out of your sale, your property needs to go back on the market and you are locked into purchasing another property.
You fell in love with a particular home and don’t want to risk losing the opportunity to purchase by waiting for your house to sell.

Most Lenders offering this product require settlement of sale and payout of bridging debt within 6-12 months. This can often create stress due to penalties and penalty interest rates creating a higher end debt than budgeted for.

It is wise to know in advance of bridging what your end budget is and what you are prepared to sell your house for if needing to meet the time lines.

A Lawform Broker can give you the best and worst case scenario prior to committing yourself to this type of loan – mitigating potential risk.