AllActivities Age Concern Anytime Fitness Gym Art Beauty Beer Of The Week Blog Business C2C Care Care Home Charity Children Christmas Cinema City Status Cliffs Pavilion Cliffs Pavilion Cliffs Pavilion Review Cocktail Recipes College Community Competition Competitions Construction Coronation Coronavirus Covid 19 Dannielle Emery Design Easter Education Emma Smith Employment Emsella Chair Environment Essex Police Essex Police News Events Family Fun Fashion Festival Film Finance Fitness Food Food & Drink Football Fresh Face Pillow Company Gardening Hair & Beauty Halloween Harp Havens Hopsice Havens Hospice Havens Hospice Havens Hospice Press Release Havens Hospices Havens Hospices Havens Hospices News Health & Beauty Health & Fitness Historicaleigh History Holidays Housing Indian Indirock Indirock Jubilee Karen Harvey Conran Kids Kids Blogs Kids Competitions Kids Reviews Lady McAdden Legal Legal Eagle Leigh Folk Festival Leigh Library Leigh On Sea Leigh On Sea Finds Leigh Road Leigh Striders Leigh Town Council Leigh Town Council Press Release Leigh on Sea Leigh on Sea Sounds Leigh on sea Folk Festival Leigh on sea Town Council Leigh on sea news Lifestyle Little Red Panto LoS Shop London London Southend Airport London Southend Airport Los Shop Marathon Melinda Giles Mortgage Angel blog Mortgages Motherofalloutings Mughal Dynasty Mughal Dynasty blog Music My Mortgage Angel MyLoS NHS News News Newsletter Offers Other Outfit Of The Week Palace Theatre Parenting Parking Picture Of The Week Pier Politics Press Release Professional Property Property Of The Week RSPCA Ray Morgan Re:loved Recipes Recycling Restaurant Restaurant Review Restaurants Review Roads Rotary Club Royal Hotel Royal Hotel Southend Royal Visit Schools Seafront Shopping Show & Music Reviews Show Review Show Reviews Show Up Productions Shows & Music Shows & Music Review Shows & Music Reviews Southend Southend Airport Southend Airport Press Release Southend Airport Press Release Southend Borough Council Press Release Southend City Council Southend City Council Southend City Council Blog Southend City Council News Southend City Council Press Southend City Council Press Release Southend City Council Press Release Southend City Council blog Southend Council Press Release Southend Hospital Southend In Sight Southend In Sight Press Release Southend on Sea Southend on Sea City Council Press Release Southend on Sea City Council press release Southend on Sea city Council Press Release Southend on sea City Council Press Release Sport The Mortgage Mum Theatre Theatre Blog Theatre Review Theatre Review Theatre Reviews Transport Travel Village Green Volunteer Weddings What's On Whats On blog c2c news shopping
The Mortgage Mum - The basic of a Bridging Loan!
The Mortgage Mum – The basic of a Bridging Loan!
A bridging loan is, in a nutshell, short term finance available quickly. It is mostly used in property transactions, but it is not limited to property.
The most important thing - You need to have an exit strategy in place to get a bridging loan, and you need to have a suitable amount of equity to secure the loan against. You can use equity from multiple properties to achieve this, unlike a mortgage which can only be secured on one property at a time! It is also available much quicker than a mortgage, which is why most people turn to it when buying a property at auction. However, there are quite a few situations when a bridging loan can be a great idea. Some other examples include:
- 1. If your chain breaks down and you don’t want to lose the property you are buying
- 2. If the property you are buying is not suitable for a mortgage (usually if there is no kitchen or bathroom or no running water) so you need to do some renovations before you can get a mortgage on it
- 3. If you want to buy a property to renovate before renting it out or moving into it
You have the option to pay back the interest on a bridging loan monthly, or you can pay nothing until the bridging loan is paid back in full. The interest and all fees are rolled up into the final payment.
Loan amounts also work differently to a mortgage. You have a net loan and a gross loan. Your net loan is the amount you need in your hand and the gross loan is the amount including all fees and interest rolled up. You would normally get a bridging loan agreement for 12 months, but you can get it for longer or less time! If you pay it back earlier, you will save yourself interest!
At The Mortgage Mum we work with an amazing team called Affinity Specialist Finance, who are part of Affinity Mortgages. They specialise in development finance, commercial loans and bridging deals. If you think a bridging loan could be the best option for you, or you want to discuss this further, please get in touch with me. It is a tricky market to navigate and you need people who know their stuff!
You can contact The Mortgage Mum on her website www.themortgagemum.co.uk or on her social pages. Get in touch today if you have a mortgage enquiry or if you think you may be interested in becoming a Mortgage Mum yourself!
ADD A COMMENT
Note: If comment section is not showing please log in to Facebook in another browser tab and refresh.