How Bridging Loans Make Your Move Stress-Free
Moving to a new home is an exciting adventure, but let’s face it, it can also be a stressful experience. The good news is that there’s a solution to ease your worries and make your move as smooth as possible: bridging loans. In this article, we’ll explain what bridging loans are and how they can help you have a stress-free moving process.
How does a bridging loan work?
Bridging loans serve as a financial bridge to help you transition seamlessly from one property to another. Here’s how it works: Let’s say you’ve found your dream home, but you haven’t sold your current property yet. A bridging loan enables you to purchase the new property while giving you the flexibility to repay the loan once your existing property is sold.
Eligibility criteria and loan terms
To qualify for a bridging loan, lenders typically consider various factors. These factors may include the value of your current property, the purchase price of the new property and your ability to repay the loan. Each lender has their own specific eligibility criteria, but they generally assess the viability of your financial situation and the overall value of the properties involved. Loan terms can vary, but they usually range from a few months to a year, giving you ample time to complete the selling process.
Types of bridging loans available
There are two main types of bridging loans available: closed bridging loans and open bridging loans. Understanding the differences between these types of loans allows you to choose the one that best suits your specific circumstances.
Closed bridging loans are suitable when you have already exchanged contracts for selling your current property and have a fixed settlement date in place. This type of loan ensures a smoother transition as you have a confirmed timeline for the sale of your existing property. With a closed bridging loan, you can proceed with confidence, knowing that the funds will be available when needed.
On the other hand, open bridging loans are ideal when you haven’t finalised the sale of your existing property. This type of loan offers greater flexibility by giving you more time to secure a buyer and negotiate the best possible sale price.
In addition, an open bridging loan gives you the freedom to proceed with your new home purchase without the pressure of a fixed settlement date. This flexibility allows you to take advantage of favourable market conditions or hold out for the right offer on your existing property.
How bridging loans help in your moving process
Facilitating quick property purchases
One of the significant advantages of bridging loans is their ability to facilitate fast property purchases. In a competitive real estate market, timing is crucial. With a bridging loan, you can secure your dream home before someone else does. This peace of mind allows you to focus on selling your current property without the added pressure of potentially losing out on your desired new home.
Providing flexibility in selling and buying timelines
Bridging loans offer you the flexibility to align your selling and buying timelines. Unlike traditional loans that require you to sell your current property first, bridging loans give you the freedom to buy your new home while allowing you to wait for the right buyer for your existing property. This flexibility removes the urgency to settle for a lower offer or rush the sale and helps you to make informed decisions and maximise the value of your current property.
Bridging the gap between selling and buying properties
When you’re in the process of selling your current property, you may encounter situations where you need funds to cover the down payment or other expenses for your new home. Bridging loans bridge this financial gap, as they provide you with the necessary funds to ensure a smooth transition between properties. As a result, you do not need to dip into your savings or rely on other sources of financing, which allows you to proceed with confidence in your new purchase.
Avoiding the stress of multiple moves or temporary accommodations
Among the common stressors during a move is the need for multiple moves or temporary accommodations. With a bridging loan, you can avoid these inconveniences. Instead of moving out of your current property into temporary housing and then into your new home, a bridging loan allows you to move directly from your old property to your new one. This streamlined process reduces disruption to your daily life, saves you from the hassle of packing and unpacking multiple times and lets you settle into your new home seamlessly.
Key takeaway
Bridging loans offer a stress-free solution for your move. They provide you with the financial support and flexibility needed to navigate the home-buying process. With a bridging loan, you can secure your dream home, bridge the gap between selling and buying properties and avoid the inconvenience of multiple moves. If you’re planning a move, consider exploring the bridging loan options available to you.
At Mango Mortgages, we specialise in providing bridging loans that are tailored to meet your unique needs. With our bridging loans, you can enjoy the benefits of quick property purchases, flexibility in selling and buying timelines and the convenience of bridging the gap between properties seamlessly. We offer competitive interest rates and flexible repayment options to ensure that the financial aspect of your move is hassle-free.
Don’t let the complexities of the moving process weigh you down. Take advantage of our bridging loan options and experience a stress-free transition to your new home. Apply online here.
Mango Credit
Yanis Derums is the Founder and Director of Mango Credit– a leading private lender specialising in bridging loans for personal use and business short term loans for commercial and/ or investment purposes. Yanis has extensive experience with financial analysis, credit assessment, product structuring, and general business management