Bridging loans are a short term finance solution to ‘bridge’ the gap until you find a more suitable permanent solution. Bridging loans can be perfect for that renovation project before you sell the house to make a profit or providing that facility to buy your new home before your existing property has sold.
Key Mortgages can help you find the right bridging loan and provide financial stability when a short term solution is needed.
Purchasing a new property can be a costly process and it’s not uncommon to experience some friction in between buying and selling your home. A bridging loan will allow you to meet transaction deadlines while enabling you to move into a new property while waiting for a buyer on your own.
Although bridging loans aren’t easily accessible, most major banks do provide them. Contacting your bank directly and discussing your needs will give you a higher chance of getting a loan. Approaching a mortgage broker first is a better option.
This loan is more favoured by homeowners who have exchanged contracts and are waiting for the completion of the property sale. You might have a fixed date arranged when the loan can be repaid.
This type of bridging loan has no set date for repayment and is commonly used by homeowners who have found a new property but are waiting on a buyer.
Bridging loans are suitable for landlords and those looking for fast property purchase. Property development could involve bridging finance and can be tailored to the situation and duration you require.
Once you have submitted an application, you can expect to receive a decision within 24 hours. It will then take 2 weeks for necessary checks to be completed.
This depends of the value of the property you are looking to secure a loan against, but it could be anywhere from £5,000 to over £250 million.