Sell your house to be able to buy another house? It seems logical, but in practice it doesn’t always work. If you are unable to sell your house in time, this can cause a lot of stress. And for a financial problem. A flexible bridging loan solves this for you.
Together with your partner you are the owner of a house. One day you decide to buy a new house. To make the bill correct, you will have to sell the current house. Nothing seems to stand in the way of your happiness, but the sale of the house is dragging on. Enough interested, but no buyers … Meanwhile, time is running out! What can you do? Simple. Visit an independent credit broker such as Auxilina. He will explain to you how a bridging loan can help you.
What is a bridging loan?
The name says it all: a bridging credit, also called a bridgingPip, is a loan that bridges the period between the moment of sales and purchases.
Why take a bridging loan?
A bridging loan is interesting if your existing home will not be sold on time. Or also when you immediately need the money from the sale to pay for the purchase of your new home.
How does a bridging loan work?
There are different options, depending on the lender. Specifically, a bridging loan provides you with the money you need for your new home.
Duration of a bridging loan
Here too, there are many differences between lenders. The duration is generally between 1 and 24 months. Inquire about the possibilities to make a simulation of a bridging loan.
Interest formula for a bridging loan
Most banks use a variable interest rate from their offer. Such as an annual or three-year variable interest rate. But because the term (maximum 24 months) of a bridging loan does not usually exceed the term of the variability, the variable interest rate actually becomes a kind of fixed interest rate.
When do you repay the bridging loan?
The bridging loan is repaid by the notary with the proceeds from the sale of your existing home.
Where can you take out a bridging loan?
That is possible at a bank, but also at a broker or credit broker. The latter will calculate how much you can borrow and compare the conditions of different specialized lenders and provide you with the best possible proposal. A bank only sells its own loans.
Advantages of a bridging loan
A bridging loan gives you peace of mind. Selling a house is often a source of stress. Certainly if you want to do that before a certain date. With a bridging loan you avoid that extra pressure.
Advice for a bridging loan
Do you want to know more about a flexible bridging loan? Then contact an Auxilina office in your area . We are happy to answer all your questions.
If you would like to read more of these tips about this form of credit, you should certainly click through to this general page about bridging credit.