When do I need a bridging loan?

There are various reasons why you would want a bridging loan:

To purchase property quickly, E.g. from auction.
If you have been to an auction, and won a property, you would have had to put down a deposit there and then, most likely you will then have to pay the full amount within 30 days. You may not be able to secure a long term mortgage in this time, especially if going to the auction what a spontaneous move. You can then use a bridging mortgage to purchase the house, this will then allow you plenty of time to organise and secure a long term mortgage.

To buy a new property before the sale of your current one
You may need to move into your new house sooner than you can sell your current one. This may be because of a deadline, and the seller will move to another buyer if you don’t make the deadline.

Convenience
You may want to move on a specific date for convenience reasons, such as children’s school holidays or the time you can arrange to have off work, you may even be starting a new job in a new area.

The sale of your house could fall through
There are many reasons why the sale of your house could fall through, your buyer might pull out for various reasons or the chain could break further down the line.

Temporally funding an incomplete property and its repairs.
This particularly applies to budding property developers, who may have bought a property that is in need of repairs and/or refurbishment. Until the repairs and refurbishment is complete, you won’t be able to have an accurate property valuation, therefore a bridging loan can be used until work is complete and a long term mortgage secured.

To allow purchase of a new property while a long term mortgage is arranged
If it’s an impulse buy, or its taking more time to secure a longer term mortgage than expected, this may be because of a misunderstanding between you, your lender or your solicitor about the process and what it involves, which will cause the overall time of securing a mortgage escalate

Wait there's more, we now have some useful information about Ringtones for free, we will be adding more related content to this site later.