In some circumstances, a remortgage may not always be the best solution. Second charge loans and bridging finance are both well known alternatives. If you’re looking to raise additional capital and have a property to secure the funds against, a second charge loan may be a solution.
Alternatively, for a short-term loan, bridging finance can be used if secured against a property or land. This may help break the chain in a tricky house sale whilst you transfer funds to a new home, or it might be used whilst you refurbish or convert a property before selling for a profit.
What is a secured loan?
A secured loan is money you borrow that is secured against an asset you own, usually your home. The asset can be used as payment to the lender if you don’t pay back the loan. This added level of security for the lender means that you can borrow more at a lower rate of interest than an unsecured loan.
How much can I borrow?
The amount you'll be eligible to borrow will depend on your personal circumstances – if you have a poor or limited credit history, you may not be able to borrow as much as someone with a good credit history.
What is a bridging loan?
Bridging loans give customers short term access to money at a high rate of interest when compared with standard mortgages.They are usually put in place to help complete the purchase of a property while the customer waits to receive the payment from the sale of another.
Fill the gaps
You might have found your dream home and there’s a gap between the sale and completion dates, which could jeopardise your chances of securing the property. Maybe you need to purchase a new home but the money from your current home is awaiting a divorce settlement or probate.
A bridging loan may be the ideal solution to put you in a stronger buying position and to take the pressure off the need to sell your current home without delay.
There are lots of factors to consider before committing to a bridging loan – for instance, there can be large legal and administration fees that are not always made clear. That’s why you need our advice!
If you own your own home and need a little cash to play with, get in contact with Xpress Mortgages who will be able to help you to raise finance from your property.