At Bridginfinance.com, we love helping our customers achieve their dreams of owning a new home and we understand that sometimes you are unable to complete the sale of your home before the one that you want to buy becomes available. This is why we offer closed bridging loans as a way to make it possible for our customers to buy a new home. When you have a contract on your home and a set closing date, you can get a great rate on the money you need for your new house with closed bridging finance.
How Do These Loans Work?
When you have not yet completed the sale of your home but already have a closing date set, you can use a closed bridging loan to get the money you need in order to close on a new home. Because the lender won’t be assuming a lot of risk with this type of loan, you can usually get a great rate on the money that you need. Once you have sold your current home, you will be able to repay your closed bridging loan, leaving you with just one home and the mortgage that you have on it.
How Else Can These Loans Be Used?
While closed bridging loans are most often used to finance the purchase of a new home before the sale of the original home has been completed, they have a number of other uses as well. They can be used by businesses to help deal with seasonal fluctuations or to buy new equipment. Some businesses use closed bridging loans to buy stock at discount and then repay the loan as they sell the stock. Even property investors can benefit from these loans as they will allow them to buy new property and then rent it out.
Who Can Take Out a Closed Bridging Loan?
Before assuming that this is the right type of loan for you, you need to talk to an expert about whether or not it is the best loan option for your needs. While it does feature great rates, the fast repayment time can be difficult for some people.
Buying a new home doesn’t have to be stressful as long as you use closed bridging finance to help you pay for the purchase. Knowing that you can pay back the loan as soon as you sell your current home will give you peace of mind and allow you to borrow the money at a great rate.