Bridging finance - offering a short term finance solution
Bridging finance is most commonly used to bridge the gap when you have bought one home before selling your existing home. During this period, you still need to pay interest on your existing property – until the home sells.
Whilst the banks may assist if you have sold your home unconditionally, this is not always the case. Some clients require a closed bridging loan where they have a definite settlement date and a new home purchase. While others require a more flexible open bridging loan, where there may not be any offers on their existing home, and they need assistance for an unknown period.
Bridging finance is also a temporary fix if you have issues with your current lender’s criteria when looking to subdivide your property, build on your rear site or if you need to pay IRD Tax. Refinancing for a short period to allow you time to sell without the dreaded “Mortgagee Sale” tag is also an option, as mortgage advisers, we can help you to understand the financial steps and bridging period needed when waiting on the sale of your existing home.
With good equity, there is usually a way we can help. The lenders we partner with will offer bridging products, with terms of 6 to 12 months. Bridging finance is available for residential property, in your personal names or a Trust, also rental investments, and commercial and lifestyle properties. Having strong equity may allow some or all of the interest to be included in the loan, which can help meet the lender’s servicing criteria.
If you would like to know more about bridging finance with Non Bank lenders, then give us a call today. We will chat about what you would like to do and see if we can find an effective solution that fits your personal circumstances.