There are a number of reasons why a person might want to sell their current home and move to a different one. It might be that the current property is much too small for their growing family and so they need to move to a much larger property to get the space that they need. It may also be that they just want to trade up and climb up the property ladder once more to get a home that will provide them with a substantial nest egg when retirement comes around. However, many remember going through their first mortgage application and the amount of paperwork and time and energy that it took to get that home loan and it is something that they would like to avoid if at all possible. The thing then, is how can you buy a new home when you still have your current one and it hasn’t sold yet.
If you have found a home that can be only described as the one that you’ve always had in your dreams, then you may not want to have to wait the length of time it takes for any lending institution to process a mortgage and so you want to get hold of money quickly so that you can purchase the property and then sell your current property quickly. This is why many people talk to Ascot Bridging Finance because this particular service provider can provide them with a bridging loan that allows them to purchase a new property while waiting for the old one to be snapped up. There are a number of situations where you might want to consider applying for a bridging loan and the following are just some of them.
To Fill a Financial Gap
As was mentioned briefly before, you may want to buy a property that you think might not be on the market for a long time and so you want to strike while the iron is hot. The unfortunate thing is that you will still have to sell your own home and so you need some money to help act as a bridge so you can make the purchase while waiting for your own property to sell. A bridging loan is perfect for this because it is a short-term loan that can be paid back quickly once your older property has been sold.
To Flip a Property
It is a full-time occupation for a number of people to purchase a property and then to spend money developing it and then sell it on quickly. In order for this to happen, they need the necessary finance but having to apply for a mortgage for example would take too long and so a bridging loan is perfect because it gives you access to finance almost immediately and this means that you can fix up the property and sell it quickly.
If you’re looking for some kind of short-term loan that is incredibly flexible and you can use a current property as security, then it sounds very much like a bridging loan is definitely for you.