We know that buying a new home is a major process in itself – researching all those properties to find just the right one that suits your family lifestyle and budget – it’s never easy.
And then combine that with selling your home at the same time! All that home selling preparation and the whole stressful process of selling the home that you have loved.
Have you considered bridging finance? Here, at Mortgage House we are all about flexibility and clever options to make it easier and stress-free for you.
Why not consider leaning on your current equity to help you buy that new home. It’s unlikely the timing will not line up and you don’t want to miss out on that perfect buy.
A Bridging Loan gives you that flexibility to carry you over when you are in between buying and selling at the same time.
First, we will do a quick ‘equity check’ on your current loan, as the proceeds from that sale are normally used to pay a Bridging loan back.
Our expert lending specialists are here to help you prepare your application – which is usually quicker for this type of loan.
As a Bridging loan is a short-term loan most banks and lenders will agree to bridging mortgages of up to 12 months, in a Single or Separate loan.
A Single Loan uses both properties as security. This is the 6-12 month option, where you aim to sell your existing home in that period. Once your home is sold, the proceeds will be put back into your overall debt and balance.
Or choose a Separate Loan for the house you are purchasing, where you won’t need to make interest payments on this loan during the agreed bridging period. Interest will still accrue, and you will make your normal repayments on your existing loan. When your old home sells, the loan is paid out and any extra debt will need to be negotiated.
Once we have reviewed your application, we will be in touch quickly to confirm your successful outcome, or let you know if we need more details
A Bridging loan give you flexibility to manage your current home sale and your new home purchase. It ‘bridges the gap’ and can usually be approved quickly based on your current equity.
Buying and selling at the same time can be very stressful, particularly trying to line up the timing of each transaction. So a Bridging loan will help you cover the ‘in between’ stage so you can focus on getting the best price for your current home you are selling, as well as not miss out on the next home of your dreams.
A Bridging Loan is usually up to 12 months maximum, to give you extra time and flexibility to buy and sell.
With the short-term flexibility a Bridging loan gives you, there is a slight interest rate premium compared to a normal owner-occupied loan. But considering the size of the amount at stake, it’s small in comparison to the overall gains you can make to achieve a higher sale price on your current home or a better buy price on your new home.
