You are thinking of buying another property but, without the proceeds from the sale of your existing property, you can’t afford to buy a new one.
A bridging loan is the answer because it enables you to finance the purchase of your new home prior to selling your existing property. It is also useful for borrowers who want to finance the construction costs of a new home while still living in the old one.
Different lenders have different policies with some lenders allowing you to capitalise interest to your loan until you sell. Planning is the key to a successful transition. This would also be a good time to review your current loan and examine the options available to you.
Some other questions to think of are:
Will I need to increase my loan?
If the cost of your new property including purchase costs is higher than your existing loan facility, you will need to consider paying the difference yourself or increasing your loan. I can help you work out how much you will need to borrow