Can You Afford a Bridging Loan?

When looking at buying a new home most people will sell their old one to fund this, but as most people know it’s not as simple as that, it can take some time for your property to sell. You could come across the property of your dreams but are stuck in a predicament, as you don’t have the money to pay for it.

This is where bridging loans come in, one will be used to purchase the new home and then paid back once the home up for sale sells.

Before you take out a bridging loan make sure you understand exactly how it works. There are many benefits to this type of loan but also some drawbacks too. The interest rates attached to a bridging loan are rather high compared to other loans on the market due to the nature of the loan. So before you jump straight in make sure you can afford these repayments.

This entry was posted on Monday, May 21st, 2012 at 4:04 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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