If you’d like to buy a new property before you sell your existing one, Bridging Finance could provide the funds you need to secure your new home. This loan is designed for customers who have sold their existing property (but not yet settled) and require finance for the deposit on a new property.
How to go about it
- Contact us to discuss your initial thoughts and requirements
- Complete our finance application form covering the purpose for seeking credit and the amounts of credit sought
- We will then contact you to arrange an initial consultation, to agree the basic information required and the process for completing such
- Once that has been compiled we will review it and then provide a written strategy for you to consider.
- If you would like to proceed, we will then work with you on a formal loan application process
- Search for a new home with confidence, even if you haven’t settled on your existing property
- Choose between principal and interest, or interest-only repayments
- Use the proceeds from the sale of your home to reduce the balance on your bridging loan following settlement
- Make unlimited lump sum payments, depending on the terms of your finance (restrictions often apply to Fixed Rate home loans).
- Many of these loans do not have the same features or flexibility as other variable loans
- Generally don’t have an offset account
- The greatest risk is that your property will not sell within the bridging period which may see an increase in the interest rate charged.
- Taking a secondary debt on top of an existing mortgage means that you will have an additional interest rate cost.
- Occasionally you may have overestimated the likely sale price of your existing property, and therefore fall short of the amount required to pay out the bridging loan.
Process of obtaining a loan through Connolly Finance
Total process generally takes between 4 and 8 weeks