Unfortunately, many people have been met by occasions when they are ready to complete negotiations to buy a new property when negotiations to sell their existing home or premises fall through. This can leave both sides of the deal in tatters, but with bridging finance it is possible to borrow the money required over a very short term of up to twelve months, use this money to complete the purchase of the new property, and then repay it when your mortgage or financing is sorted out.
If you are using the money from the sale of your existing house to buy a new house and the sale falls through then bridging finance can provide you with the cash. Once the sale completes, you repay the loan value from the proceeds and the loan is complete. Alternatively, if you are waiting for a mortgage agreement that is dependent on the swale of your property you can repay your bridging finance loan using the mortgage funds once they are cleared.
Bridging finance loans are not meant as a long term solution. They are short term only with terms of up to twelve months. Once the loan comes to term you will retain ownership of the property.
