Bridging Loans

 

A Bridging Loan can be used to provide funds bridge the gap between the purchase of a property and the sale of existing assets that will be used for the purchase.

Bridging Loans are often used in house purchases.  They can be used to break a chain - allowing a purchase to proceed without it being tied to a sale being completed.  They may also be useful to allow the purchase of property to continue despite a planned mortgage arrangement or sale of an existing property falling through at short notice.

Bridging Loans are usually fairly short term loans - for example 12 months maximum and may be arranged at short notice. Bridging Loans should usually be paid off in full once an associated sale has been completed.

Bridging loans may incur a relatively high interest rate.  Payment of interest changes on a bridging loan can be a major expense at a time when money is in short supply.  Before you embark on a Bridging Loan, make sure you are confident that you will be able to pay off the loan within the planned time period.

Able was I ere I saw Elba

Financial Information Services; Loans; Mortgages

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