Property bridging finance Westville
If you’re looking to purchase a new home but your existing Westville home still hasn’t found a buyer, you may need bridging finance. Bridging finance helps you fund the purchase of your new property before your existing home has been sold, which means you don’t miss out on buying the home you have your mind set on just because you have to wait until you’ve sold your existing home.
Bridging finance is becoming a more popular source of finance for those looking to raise money for a property purchase under a tight deadline, we at Bayside Finance Solutions can provide the funding you are looking for.
What is property bridging finance?
Bridging finance is a type of interim loan that allows property owners, developers and investors to access money quickly to cover both existing property and the new property you’re looking to purchase. Repayments on your bridging loan are usually calculated on an interest only basis during the time it takes to buy your new home and sell your existing home – called the bridging period. At Bayside Finance Solutions servicing Westville we will consider loaning to people even if their credit score is less than perfect, since property is being used as collateral and leveraging its value in order to bridge a short period of time and borrow short term finance.
Accessing bridging finance can be accessible in around two to four weeks, compared to a mortgage from a bank which could take several months.
In case your existing home takes longer than expected to sell, and to help reduce your total loan amount, it is prudent to continue making repayments so you’re not left with a hefty lump sum to pay back.
How does property bridging finance work?
Property bridging finance is usually secured against a property. Before considering a bridging loan, it’s recommended you have at least 50% of your existing Westville home’s value in equity, in order to avoid paying a sizeable amount of interest. And bear in mind that during the bridging period, you’re essentially paying off the interest on two properties, so selling your existing home is a priority
What are the benefits of bridging finance for your Westville property?
Property bridging finance takes away the pressure of having to match up settlement dates, letting you sell your house without worrying about losing it entirely. It is the best way of buying the home you want immediately without having to wait, letting you secure a new property without having to spend days or weeks worrying about selling your existing house first. It is also an ideal option for finance if you’re considering building a new home in Westville while you live in your current home.
A mortgage really isn’t an option, as this can take weeks, and getting a definite buyer for your current property may take time. This is one of the most common reasons why Bayside Finance Solutions has more and more clients wanting advice and a bridging solution, as it helps to ‘bridge’ the gap between selling and completion, enabling you to obtain your dream home.
What to think about
Get advice about bridging finance before making any decisions. There are quite a few factors to consider when deciding on whether or not bridging finance is the right option for your particular situation:
- What period of time do you need the funds for?
- What is the average time properties are taking to sell in your area?
- How soon can you get your existing home ready for sale?
- Are you building a new house or buying an existing property?
- Will you be able to meet the repayments on your current loan and your bridging loan?