Navigating Moving Home with Bridging Finance: Pros and Cons
Your property may be repossessed if you do not keep up repayments on your mortgage.
Some Bridging Finance is not regulated by the Financial Conduct Authority
Key Warnings and Considerations
If you’re an existing homeowner and you want or need to move, there’s a lot to be said for moving into your new property before you sell your old one. The main advantage is that you know you have somewhere to go. This saves you either having to rush to find a suitable property in a rush or having to rent somewhere and then move again once you find somewhere suitable.
The challenge, however, is carrying two mortgages at once and this is where bridging finance can help. Essentially, bridging finance is a special type of loan which allows you to pay off the mortgage on your existing property by replacing it with a short-term loan which is paid off when your old home is sold.
Balancing Costs and Convenience with Bridging Loans
Bridging loans can be expensive and if your existing home takes longer than you’d like to sell (for example a sale falls through) you may have to start making repayments while paying your new mortgage. On the other hand, it can be worth paying for convenience, especially if you have children and want to move in the school holidays so that you can get them settled into their new home before they have to go back to school.
Vulnerable Customer
We understand that from time to time our clients may find themselves dealing with circumstances which could mean they are potentially vulnerable. For example, a change in health, caring for a family member or coping with the loss of a loved one. There are many different types of vulnerability, and what makes one person vulnerable might not affect someone else. When we are vulnerable, our need for financial advice may change. However, admitting vulnerability or seeking help can sometimes feel hard.
If this is something you would like to discuss with us, please ask for a copy of our support guide or download a copy here. This guide is designed to help explain vulnerability and the ways in which we might be able to support you. If you feel any of the circumstances in the brochure apply to you, please talk to us.
