If you’d like to buy a new property before you sell your existing one, Bridging Finance can provide the funds you need to secure your new home. It’s suitable for people who have sold their home but not yet settled and bridges the gap between receiving funds from the sale of your home and placing a deposit on the new property.
It’s a short term loan which covers both your existing mortgage and your new home loan. You’ll still need to arrange a deposit and cover any additional home buying costs on your new property.
During the bridging period, you’ll make repayments on both loans. Once you sell your current home, the proceeds will pay out your original mortgage and go towards reducing the mortgage on your new property. The bridging finance then turns into your new mortgage.
You are eligible for a bridging loan if you have sold but not yet settled on your current home and have bought but not yet settled on your new home.