Sometimes you get to find your dream home first before you get a buyer for your old house. It might take a while before you find someone to buy your old house depending on things like the location of the property among other things.
Besides, it can be a bit difficult to buy a new home and at the same time try to sell your old home. However, with bridging loans, you can now be able to buy a new home even before you find a buyer to purchase your old house.
With that being said, let us look at some benefits that you as a property buyer can enjoy from bridging loans. You can also find out more about bridging loans here.
No waiting
As said before, with bridging loans, you won’t have to wait for someone to buy your old property before you could buy your new home.
This is maybe the greatest advantage property buyers get to enjoy because in the property market, snoozing is losing. This saves you time as you will be able to acquire your new home before someone else snatch it away from you.
Imagine that feeling you get when you watch your dream home going just because you weren’t able to find a buyer for your old home on time. With bridging loans, this should be least of your worries.
Costs
Bridging loans can help you to save on the costs you are likely to incur on rent and moving once more. For instance if you get to sell your old property first, you will most likely find somewhere else to rent before you get a new home.
The moment you get it, you will then be forced to move again and this is how people end up losing a few bucks just to cater for these costs.
Bridging loans will help you to avoid such situations as it allows you to move in your new home before selling the old one thus saving you from these extra costs.
You can also contact a professional mortgage broker and let him take you through all the options you might have before you make any move as this things can get confusing sometimes. Here are some other things you should know about bridging loans https://www.nicheadvice.co.uk/top-ten-things-you-might-not-know-about-bridging-finance-short-term-loans/ .
Rates
In this market of home loans, bridging loans aren’t a new thing. This concept became much popular after the banking deregulation.
This is when the banks were given full control to participate in the financial market as they were also allowed to come up with their own rates when it comes to the interest.
This was seen as a highly risky finance type which then led to higher interest rates hence the deregulation in mid 80s.
Some lenders will still charge higher rates for the short term loans while others offers these loans having the same interest rates as that of a standard mortgage.
Same home loan fees
Could you be among those who usually worry about being charged more for bridging loans? Well, with bridging loans, worry not.
Don’t beat yourself up worrying about high application fees or the ongoing costs of the home loans. This is because it is just the same that for a standard home loan.
Also, keep in mind that certain break costs and fees for early termination might be applied if you have plans of switching or changing the lenders during the period of the bridging loan.
Reducing the interest bill
Well, until you are able to sell your old property, the repayments for the bridging loan will always be frozen during the bridging period.
This leaves you with one option and that is to find a way of taking care of the mortgage you are currently having than paying back to different home loans.
Keep in mind that you can also make unlimited repayments to reduce the interest and make it simple for you to manage the repayments in future.
Conclusion
If you are looking for a new property or home, you first need to contact an expert to walk you through the whole processes. If you really want to buy a new home and you are worried about finding a buyer for your old house, a bridging loan might just be what you need.
Even if you look at the top 10 finance advices when buying a property, going for a bridging loan can’t miss on that list.
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