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Here’s an all-to common scenario – a homeowner looking to relocate finds and falls in love with their prefect dream property for a once-in-a-lifetime price, but delays in shifting the currently owned property pretty much rule out any chances of sealing the deal. Everything’s in place apart from the speed at which the old property can be shifted – exactly where bridging loans come into the equation. And while there are of course plenty of critics who argue that bridging loans can be pricey and should technically only be considered as a last resort, they’re often the only option at the disposal of a mover in distress and are worth every penny if able to make dreams come true. Technically speaking, a bridging loan taken out at the right time and under the right circumstances could save a person a fortune – speeding up the moving process and enabling buyers to make the most of deals that don’t come along often enough. In the simplest of terms, a bridging loan is something of a short-term financial solution that offers a mover the cash needed to fill the offer they’ve had accepted on a new property before they’ve actually managed to close a deal on their existing home. The theory is basically one whereby it’s entirely unnecessary to miss out on incredible deals and kiss goodbye to dream homes for no reason other than a slight delay in the selling process of the current home. When it comes to bridging these gaps and making the best of what’s available, the only realistic and accessible options on the cards for homeowners are bridging loans and applying for a second mortgage. Now, while both will of course result in the homeowner paying for two loans at the same time, the latter can be quite immensely difficult to organise and even more tricky to tie up once the sale of the existing home goes through. By contrast, bridging loans have been designed for exactly these kids of scenarios and therefore have the potential to make things infinitely easier. It’s basically a case of weighing up exactly what’s going on in the moving process and assessing whether or not bridging loans fit the bill. In instances where there’s rock-solid certainty that the sale of the existing property will definitely go through and the lender has a decent enough credit rating, there’s no reason why bridging loans cannot be used with confidence and make all the difference in the world. By contrast however, these are the kind of loans that should never be rushed into on a whim as a means by which to invest in a new property before having even the slightest inkling that the current home will sell. Bridging loans are short-term loans and short-term only – not to be used as long-term gap fillers. It’s always difficult to know what’s around the corner where the property market is involved and therefore bridging loans in particular should only ever be considered with a level head and sensible advisement. For those that tick all the right boxes however, they have the potential to be the solution to a thousand and one moving nightmares faced by so many movers across the UK each and every day. Michael Valentine is the author of these articles. For further details about Bridging Loans please visit the website. http://www.bridging-loans.com/
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