Property bridging finance Cowies Hill
When trying to secure a property bridging loan in Cowies Hill, there are two elements of the deal that are crucial: surety of closing and timing. You need the reassurance that your financing is going to be delivered as fast as possible, because every day that goes by without funding is an opportunity for someone else to get in on the deal and you could ed up losing the property. At Bayside Finance Solutions, we understand the urgency buying and selling property, which is why we’ll provide you with direct lending and proof of funds asap. We work quickly and effectively.
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 solution you are looking for.
Our fast and easy qualification takes days instead of months to get you approved. We’ve provided bridging loans, specialising in short-term residential money lending.
Explanation of property bridging finance
The “bridge” buys the borrower sufficient time to arrange traditional long-term financing, re-position a property for re-sale or close the deal on the sale of another piece of property. A bridge loan is typically paid back when the collateral for the loan is sold or refinanced with a traditional lender.
When financing a bridge loan in Cowies Hill, a repayment strategy is put in place, so that the loan is repaid either through the sale or refinance of your property.
When a borrower expects to sell a property quickly or refinance in the near future, a bridge loan which is short-term financing, can facilitate the financing of a property for a short period of time.
Why do borrowers use bridge loans?
To close a sale quickly if borrower doesn’t have the time to arrange for a bank loan (or if another loan has fallen through at the last minute).
To buy a property that is not fully leased (or even one that is empty) to give the borrower time to lease it up so that the debt service coverage will meet a bank’s requirements.
To save a property from foreclosure.
To purchase land and hold it until construction loan financing is available.
To refinance a property to get cash out when banks are unwilling to do so.
What are the benefits of bridging finance for your home?
Allows you to move rapidly on the purchase of a new home, without worrying about selling your existing home first.
Provides a viable option when high loan to value financing from a bank is not available.
It also offers finance to build a new home 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 are the risks of property bridging finance in Cowies Hill?
We make our customers aware that this is a slightly more expensive source of finance compared to a traditional bank mortgage and you could run the risk of your property being repossessed if you cannot keep up with repayments in the long-term. The biggest risk with bridging finance is overestimating how much you are going to sell your existing home for. If your home sells for less than what you anticipated, your bridging loan may not be enough to cover the cost of your new home and you could run the risk of ending up with a far bigger debt to repay.
If your existing home takes longer to sell or the sale falls through, you could find yourself dealing with a larger debt. The lender could also increase the interest rate on your mortgage if your existing property doesn’t sell within the allotted bridging period. 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 Cowies Hill while you live in your current home.
Bridge finance Cowies Hill?
It’s a situation you might find yourself in if you’re buying a new house but still need to sell your old one to fund the purchase. Technically, it actually means you have to service two loans at once for a while, but the bridging finance loan can be a great option. It’s important to let us help you to get your bridging finance structured correctly so that it doesn’t leave you with a larger-than-necessary ongoing debt.
There are two different kinds of bridging finance. Closed bridging finance applies when you’ve already sold your existing Cowies Hill home and agreed on a settlement date. but you have, also bought a new home that settles before the sale of your old property. Therefore, for a short period of time, you will own both properties and the debt that goes with it.
Open bridging finance applies when you’ve bought a new home but haven’t sold your old one yet. You have agreed to buy your new dream Hillcrest home but don’t know when or for how much you will be able to sell your existing home for. This is a much riskier scenario than closed bridging finance because we don’t know when you will be able to repay your bridging loan. Your old house could take many months to sell, and it might not achieve the price you were expecting.
Regardless of which situation applies to you, Bayside Finance Solutions may be able to offer you property bridging finance. Talk to us today to discover your full range of options, and to make sure your bridging finance is structured to your best advantage.