If you need money to purchase a new property, it may be a good idea to consider other options. Getting a mortgage from a bank is not the only route that you can take if you need to get money to buy a new property with. You could head down the route of getting a bridging loan from a finance company. This kind of option may offer the speed that is often lacking in traditional bank loans.
A bridging loan is where you borrow money from a service in order to bridge the gap from the time that you do not have the money yet to pay for your new property. You can that money to pay for a new house if you go get a bridging loan. And then you can usually pay back that money when you have finally completed the sale of your old property.
Do you need money quickly?
Bridging loans are designed to be a short-term solution. So this means that you are able to get your money pretty quickly. If you need to buy a property right away, then a bridging loan may be the best option for you. If you go through a bank, then you may have to wait for several months to get your loan approved, if it gets approved at all.
Have you tried applying for other loans?
If you have tried to apply for a loan through a bank, and you got turned down, then you may want to try getting a bridging loan. With this type of loan, you have got more chances that it will get approved.
Do you have an exit strategy?
It is always a good idea to have an exit strategy for when your old property does not sell off quickly or for the price that you thought it would sell for. If you have got an exit strategy in place, then you are much better off choosing this kind of loan option.
So as you can see, there are a lot of considerations that you need to carefully think about if you are going to get a loan of any type, especially that of a bridging loan. And one other consideration that you need to think carefully about is the lending service where you get your money from. There are a ton of them out there but not all of them will work for your best interests. You may want to look into this website at www.bridgingfinance4u.co.uk/if you are trying to find a bridging loan lender that is a reputable one. They are also based in London, so if you are in the area, they may be the best company to work with.
It may be a good idea to choose a bridging loan over a more traditional kind, but that is not the same in all cases. For a lot of homebuyers who have gone to those high street banks, you may need to look elsewhere to get your money. And it may be time for you to consider other options, such as bridging finance.