A bridging loan is a short-term secured loan. They can be used to ‘bridge the gap’ between purchasing a property and selling your existing one. This is why the repayment term is usually between 6 and 24 months.
Acquiring a bridging loan gives you a faster way of getting the funds you need, to counteract the usual long waiting times. However, it is important to have a good exit-plan in place to ensure repayment is as easy as possible and achievable. This is because bridging loans are often more expensive than conventional loans and mortgages.
If you would like more information regarding bridging loans and the requirements to qualify, contact us today. You can do this by calling us on 03300 167 847 or filling out our contact form below.
The process of buying a property can be complex, which is why it’s important to speak to an expert who knows how to handle the process. Whether you’re a first time buyer, have purchased several properties, or are looking to remortgage, our expert conveyancing solicitors can help you.
Bridging loans, while extremely useful, can also be complex. However, a solicitor can easily help you find out if you are eligible for a bridging loan. The factors that are typically considered include:
With a bridging loan solicitor in place, you will receive advice and expertise on how to ensure your exit strategy meets the requirements.
Our experienced solicitors will conduct an initial consultation with you to discuss your situation. Once we have an understanding, we can provide you with a layout of how we can help you with your bridging loan requirements. We will then be able to provide you with a price quotation and a choice of funding methods available to you.
Here at Black Norman, we’re particularly connected to the area where we are based and are expert conveyancing solicitors in Crosby, Liverpool. We are very keen to help those buying a property in Liverpool and the surrounding areas, as well as clients further afield.
Our solicitors are trusted by many, and our testimonials speak for themselves. To contact us about the property purchase process and get started on your purchasing or remortgaging journey, call us on 03300 167 847 or fill in our contact form below.
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The process of buying a property can be complex, which is why it’s important to speak to an expert who knows how to handle the process. Whether you’re a first time buyer, have purchased several properties, or are looking to remortgage, our expert conveyancing solicitors can help you.
The process may be different depending on your requirements, but our trusted property purchase solicitors are here to guide you through this process.
For a full detailed breakdown on the legal side of buying a property, read our comprehensive guide here.
Our team is here to help you with the process.
When setting up a bridging loan, there are other costs that you will need to cover, including interest. These include:
An open bridging loan is a short-term loan without a defined exit strategy or end date; it is open-ended. A closed bridging loan must have a defined exit strategy. Open bridging loans are considered to be more risky. They usually have a higher interest rate than closed loans, and the lender will need to be satisfied that you will be able to pay back the loan.
If you are unable to meet the specifics of your exit strategy, there are a few things that you can do. One option is to ask your lender to extend the exit strategy due to your circumstances. However, if you do this, it may change the terms of your loan overall.
If your lender is not willing to give you an extension, you can choose to re-bridge with another lender. The potential for higher interest rates may increase due to greater risk, as you would then have a history of repayment issues.
The fees you are charged to hire a solicitor will vary depending on several factors. At Black Norman, you can get in touch with one of our experienced bridging loan solicitors to obtain a free quote. You can do this by calling us on 03300 167 847 or filling out our contact form.
