Article: Why Choose A Bridging Loan?

Why Choose A Bridging Loan?

Listed below are some of the reasons for choosing a bridging loan. A bridging loan is a short term mortgage which is secured by your property. This is usually arranged by getting a mortgage on the new property, and taking out a second mortgage on the property being sold.



In effect, this type of lending is a kind of mortgage. It is secured on your home, but without the low interest rates usually associated with a mortgage. You must be aware of the risks associated with this. If you fail to sell your existing home, there is a chance you'll have to sell your new home just to pay off the lending.



Probably the most common use of a bridging loan would be connected to buying a property. A bridging loan gives you an agreed amount to help you bridge the gap between s...
 

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Why Choose A Bridging Loan?

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