Using bridging loans for house purchase
Bridging loans offer short term finance designed to fill a temporary gap in funding. They are often used for property purchases where a more traditional mortgage is not an option.
Common situations where bridging loans are used for house purchases include when buying at auction, where buyers are required to complete the property purchase within a timeframe too short to allow them to apply for a mortgage.
Bridging loans can also be helpful when buying houses which need significant renovation work to be carried out before they will be considered mortgageable. Another popular reason for taking out bridging finance is when an offer has fallen through on a borrower’s home and they want to move forward with buying a new one without having to wait to find a new buyer of their own.
When using a bridging loan to a buy a house, it is important to have a repayment strategy in place as this type of borrowing is usually offered for a maximum of 12 months and tends to come with relatively high interest rates.
Reasons to use a bridging loan broker
Due to the higher rates charged on bridging finance, it is especially important to get the best deal you can. This will help to keep your monthly repayments as low as possible, allowing you to access the money you need for less.
A bridging loan broker will be able to connect you with all the leading lenders, including those not available on the high street. This means you will be able to get the cheapest interest rates on your bridging loan quickly and without a lot of work on your part.
Get the best rates on bridging loans
Our experienced professional bridging loan brokers can help you get the best deals available on short term finance. With our connections to specialist lenders we can find you the money you need at the lowest interest rates on the market.
To find out more, simply fill out the contact form above or call Fair Loans today on 0117 313 6058.