It is used when you are already own their main residenceand that we wish to buy your new main residence without having yet sold the current.
The bridging loan is a advance granted by the bank on the future sale of a property.
This advance allows you to reduce the amount borrowed on the new investment by creating a line of contribution to be repaid once your property has been sold. This advance will be to be reimbursed in a short space of time between 12 and 36 months.
Your repayments will not be the same as for a conventional loan, as you will be repaying only the interest on this loan. These interests are to be paid each month or they will have to pay the day the property is sold.
You will have no choice but to repay this sum at the latest at the end of the planned period. It cannot be added back to your overall loan if you do not sell.
That's why, before opting for a bridging loan, it's best to ask an expert broker for advice.
Are you concerned or do you still have questions? Get in touch with us!