You have got the dream house; planning to go for a move. But what happens if you are not having enough money to get the home. Obviously the best solution to you will be selling your current home and use the money. In today’s world though rarely there will be a problem to sell a home, but you may find bridging loan to be very much helpful when you are in between a property move.



Yes, bridging loans are designed to help homeowners while buying property. These are basically short term loans. It will definitely help you to keep your new home’s deal on track.

Features provided by bridging loan

Basically bridging loans are of two types – closed and open bridging loans. If a borrower has already exchanged on the sale of his existing property then closed bridge is available for him. And lenders find less risk to go for a closed bridging loan. And if you have found the ideal home of your choice, but have not put your current home on sale then you have to avail open bridging loans.

Bridging loans are of secured type which requires you to put your home as collateral against the loan. But after having done so you can secure an amount in the range of £100,000-£400,000. Your financial status will be considered as a key factor in deciding the loan amount. But bad credit holders are also eligible to get these loans.

As the lenders are at higher risk, they may charge you high interest rate. But you can get a competitive rate out there available in market. And more over the interest will be decided depending upon the equity in your current home, your past credit report and overall your repaying capability. Loan repayment period will be of one to twelve months. During this time you have to sell your current home and repay the loan.

Getting bridging is as easier as getting another loan now a days. Go for online lenders or physical ones. But as bridging loans involve the process of evaluation of your property so it will take 7 to 10 days to get approval of the loan. During which you can go for rest of the legal processes involved.

So don’t wait for your home to be sold to get another one. Grab the opportunities provided by bridging loans.