Ever thought of having that beautiful house around the corner? The one with the perfect sit-out, tiny garden, the perfect view and the one that's the talk of the town…? I'm sure that question can be answered with a unanimous “Of course!”…We've all had fantasies of the kind that far surpass our means. Dreaming of having that house may simply be a luxury to many of us, but to a few others it can be something they've always wanted. Our wants are always determined by what our bank accounts can afford, but dreams - they have no boundaries. With our regular domestic chores to deal with and the usual household payments how can anyone possible afford to fund an additional dream? …Here's bridging your dream and you – Bridging Loans!



The resources that finance the buying of your new home is usually obtained from the sale of the one you are currently living in. The sale of your existing property is made to either coincide with the day the down payment has to be made on your prospective property or must occur prior to this payment day. This money obtained from the sale is used to make the down payment, simply because many of us do not have large financial resources to bank on. However, it is possible that the sale and purchase may not occur simultaneously or may get delayed for various reasons. Sometimes, you may also unexpectedly come upon a house you wish to buy. At such times, you cannot afford to wait till your existing home is sold. In the event that such situations arise Bridging Loans are the ideal solution.

The finance made available through Bridging Loans pays for your new property prior to the sale of your existing one. Bridging Loans are meant to be short term financial solutions that substitute for the cash that is expected to come in from the sale of your property. Bridging Loans are very beneficial since delay in this down payment may result in your loosing the property. Bridging Loans have high interest rates, but when you consider the short term over which you repay it,

A few points on Bridging Loans:

• Bridging Loans are short term financial solutions.

• They are secured loans that require collateral to guarantee repayment. The property you are selling usually acts as collateral. Lenders approve loans of up to 65% of it's value and not it's purchase price.

• Bridging Loans are used to pay for commercial or personal property when the expected money needed to pay for it gets delayed.

• These loans provide for any sum beyond £25000.

• Bridging Loans have loan terms that extend from a few weeks to 6 months. This term can stretch up to 2 years in case you portray an exceptional repayment capacity and pledge high value collateral.

• Bridging Loans involve speedy approvals that vary from 7 - 10 days.

• Bridging Loans may be very convenient but they have interest rates that are even higher than those offered on regular mortgages.

• These are interest only loans, until your property is sold.

Being, interest only loans, you are expected to repay only the interest on the loan until your property is sold, after which the proceeds of the sale repay the principal amount (a lump-sum payment). Now is when the Bridging Loan is considered as repaid in full. In case your property is not sold before the Bridging Loan matures, it can usually be converted into a regular loan without any penalty payments involved.

Advantages of Bridging Loans:

• Bridging Loans can give you the cash you need within 24 hours, if all your documents are ready.

• Lenders do not ask for upfront fees for Bridging Loans.

• Bridging Loan lenders do not charge any redemption amounts.