Whether you are a first time buyer or an experienced investor, a bridge loan can provide the funds you need to complete a new property purchase. The process is faster and easier than trying to approach multiple lenders directly. You should work with a broker, however, to make sure you are getting the best possible deal.
Which banks do bridging finance?
These are short-term loans secured against the equity of your current home. They are useful when you need money to buy your next home while waiting for your existing property to sell. They are also helpful if you need to make a down payment on a new property.
A bridging loan broker London can help you avoid having to pay private mortgage insurance if you purchase a home with less than a 20 percent down payment. You may also need to pay a broker fee to use these services.
The fees vary depending on the size of the loan, but you should expect to pay between a few hundred pounds and several thousand pounds. It is important to know the fees before you use a broker, so that you can balance them against any savings you might have.
You should also make sure that you choose a reputable broker. They should have the experience to meet deadlines and understand what your needs are. They should have access to a wide range of lenders, which gives you the best chance of finding a competitive deal.
You should also make sure that you know the pros and cons of using a bridging loan. You should not overextend yourself on the amount you borrow, or you could find yourself in a financial mess.