You have found the perfect home in the perfect location. What’s more, it’s at a price that you can afford once you have sold your house. Now, of course, you are going to prioritise getting your house on the market and getting it sold quickly.
This still leaves you at risk of losing that perfect property in the perfect location.
Bridging loans can be arranged quickly
You know that you can quickly raise money by applying for a bridging loan, but you’ve also heard that they can be an expensive way of raising capital. Whilst it is true that a bridging loan can be more expensive than a traditional mortgage, their costs have come down significantly as there is more competition in the market.
Finding the best bridging loan
This is where a bridging loan broker can help. They can advise you on how to get the property under offer; they can then arrange a bridging loan to bridge the gap between selling and buying.
Once you have sold your house, the bridging loan will be paid back in full – That’s it! Your dream home is now yours!
Can’t you do this on your own?
In short, yes. You can apply for a bridging loan yourself. However, there are several benefits to using a broker:
1) They can save money
By using a bridging loan broker, you can get approval more quickly and at a lower rate. This is possible because they can compare all of the available products. Furthermore, each application is taken on a case-by-case basis and your broker can negotiate on your behalf.
2) Reduce Stress
Using a bridging loan broker can help to reduce the stress of moving house. They deal with all of the paperwork on your behalf, and they can also handle the administration and paperwork when you sell your existing property.
3) Keep you informed
A bridging loan broker can keep you informed every step of the way, from finding the best possible product to helping you with your application, right through until completion and beyond.
4) Brokers can help with administration
All finance companies will evaluate the level of risk associated with lending you money. They will take steps to reduce their own level of risk. They can do this using two distinct methods:
- Being highly selective.
A company that only lends to the safest clients will reduce their risk. A highly selective company will only approve a small percentage of applications made to them. This means borrowers face the risk to their credit rating of having a loan refused. - Needing to know a lot about your circumstances.
In a similar manner as applying for a mortgage, a bridging loan provider may ask for a lot of information about you. This shouldn’t be a problem for most people; however, it can delay the process – putting that perfect house in the perfect location at risk.
A bridging loan broker can help you to organise the paperwork and administration aspects of your bridging loan application. This can save you time, money and your credit rating.
6) Independent advice
True bridging loan brokers are independent and are not tied to any one lender. This means that they can recommend the right loan for you, regardless of what the lender may think.
7) No need to commit
Whilst most bridging loans come with a short commitment period, this is often longer than is necessary. Your broker will be able to discuss your needs and advise you on the best length of time to commit for. Remember, even if you only need a bridging loan for a few days, it can still save you time and money to use a broker!
8) You get what you want – not what they want!
All mortgage brokers are regulated by the Financial Conduct Authority (FCA). This means that they must abide by strict codes of conduct.
9) A broker is available when you need them.
Finally, sometimes life just gets in the way. Sometimes we just don’t have enough time to do everything ourselves. A bridging loan broker can help to make things easier for you by stepping in when you need them most – it really is as simple as that!
In summary, using a bridging loan broker will help to get your dream home in the perfect location. It does this by helping you:
- Get approval quicker and at a lower rate (compared to other finance companies).
- Reduce stress (by handling all the paperwork on your behalf).
- Keep you informed every step of the way.
- Provide independent advice
There is no need to pay for anything until completion! The benefits of using a bridging loan broker are endless.