Buy or Build Your Dream House with the Best Bridging Loans
Bridging finance from HomeSec is specially designed to offer you hassle-free and smooth solutions while relocating somewhere before selling your current home or property. Bridging funding is a short-term financial solution for buying a new asset, and the person or a business owner can pay the entire amount of the loan after selling their present property. To assist in easing any financial strain in this scenario, the borrower does not have to repay the loan amount till he/she has sold out the current asset. However, there will be interest charges levied on the principal amount that will further increase the loan.
HomeSec assists established business owners or entrepreneurs by providing bridging loans as per their requirements. You will have up to 6 months to repay the total amount together with interest charges till the loan gets approved.
How do short-term bridging loans operate?
When you apply for bridging funding from HomeSec, the lender will take over the current property owners and offer the required funds for purchasing a new one. The total amount the borrower will take from us is known as the peak debt. It includes the existing property loan, the contract for the purchasing price of the new asset, and any other buying costs like legal fees, lender fees, and stamp duty.
HomeSec calculates the minimum repayments of the bridging finance based on the interest-only. In most cases, the interest gets capitalized till the time the current home gets sold. Once the borrower sells the currently owned property, he/she can repay the peak debt amount. The remaining loan amount becomes the end debt, which the borrower can return as a standard mortgage from now on.
Reasons for taking the best bridging loans
There are primarily two reasons for which most business owners or other borrowers take the bridging funding help. They are as follows.
Complete loan availability on the new property
Bridging loans allows a person to borrow up to 100% of the total buying price of the new asset together with other associated costs. It is specifically significant if you have bought a property that is not within your purchasing capability but will soon become available when you sell the existing asset.
Capitalization of the Interest rates
If you cannot cover the payments of the loans on both your new and old property, a short term bridging loan with the feature of interest rate capitalization is the best solution for you. It will permit the borrower to have breathing room while he/she can wait for the selling of their current property.
Eligibility of the best bridging loans from HomeSec
Anyone with the below criteria will be eligible for the bridging finance from HomeSec.
Lenders will have a look into the existing home equity before delivering the funds to you to borrow. It is needless to say that the more home equity the borrower will have, the more will be the bridging fund amount.
Sale contract of the current asset
Lenders also require evidence supporting the contract that the current asset is sold as a loan approval prerequisite.
Highest End Debt
The amount of end debt should never be higher than the value of the new property. If there is an end debt with more than 80% of the value of the new asset, the borrower will be liable to LMI or Lender’s Mortgage Insurance.
Without or with End Debt
Most lenders offer bridging loans on one condition that is there will be an end debt. However, if the lenders like HomeSec do not incur end debt, the fees related to the peak debt will be much higher.
HomeSec has been assisting people with their financial problems for more than nine years. We provide a full competitive banking range. We offer secure and simple digital bridging financial solutions. Bridging loans are an outstanding alternative for those people who have to quickly purchase a new property before selling their present one. Thus before opting for the loan, talk to any of our professional lending specialists so that they can offer the most appropriate financial resolution for you.
Fill out the form or call us to know if you are eligible for bridging funds or not!