Is Bridging Finance a Good Idea?
Homebuyers, homeowners, and investors benefit from bridging finance. The short-term financial solution provides an infusion of capital. Moreover, it’s a cost-effective solution.
Mortgage House is among the lending institutions that offer bridging finance to its clients. The average briding loan has a term of 12 months. Homeowners who want to sell their current home and purchase a new one benefit from this financial instrument.
Homeowners apply to the lender. Even though the verification process is not as thorough as the initial mortgage application, lenders evaluate the reason for requesting the funds. For example, failing to sell the home is not a reason for failing to repay the bridging loan.
Request a single or separate loan. After a loan specialist evaluates the application, they calculate the repayment. The application process moves quickly and it doesn’t require a lot of supporting financial documentation. The homeowner must have good intentions for the funds. For a year, they end up with two mortgage repayments plus the bridging funds. This can create a tight spot for some.
Investors can use the funds to renovate a property before they find a tenant. Once they find a tenant, it’s a good idea to pay off the extra debt promptly. This keeps the interest rate charges low and minimal.
Our loan specialists can provide additional insight into the short-term financial instrument. We also offer several online tools such as the car loan calculator.
Bridging Finance Conclusion
Bridging finance is a short-term financial solution available to homeowners. To obtain more information, contact our Mortgage House loan specialists. They’ll walk you through the requirements and application process.