Bridging Loans

Discussion in 'Finance, Property, Law' started by babiesarm, Apr 21, 2004.

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  1. FS,

    do you have any info on bridging loans, a basic explanation as to how they work etc.

    I think I might need to sort one out.

    Thank you
     
  2. Babies

    Ouch... these are very very expensive and are only ususally taken out as a last resort and for a short a time as possible.

    When you are moving house and you’ve found the right home but haven’t yet sold your own, a bridging loan may help. It gives you an agreed amount to help you bridge the gap between selling and buying your property. You may come across different types including:

    Open Bridging loan - Available when you have not yet finalised the terms on which you are selling your own home, but are going ahead with the one you are buying.

    Closed Bridging loan - Available when you have agreed the terms on the home that you are buying and the one that you are selling, but there is a delay in moving.

    Major banks and building societies can offer bridging finance, but consider all the risks before you opt for it. For example, if you effectively take on a second home loan and you fail to sell your first property, can you afford to shoulder the burden ?
     
  3. Never ever use a bridging loan....... suicidal!

    Not even to buy a bridge :D
     
  4. Thank you for the advice.

    Me and Mrs Arm are about to offer on a new house but have yet to put ours on the market, we have to move fast due to the new properties area, cost etc and have yet to put our home on the market.

    Looks like we are going to have to stretch ourselves a bit and go for it!!!

    8O
     
  5. I take it that you have had a bad experience with bridging loans MDN??
     
  6. No mate, I'm a broker

    Drop me a PM :wink: