How To Use A Bridging Loan When Buying A Home In London

London is the capital city of the UK and the largest city at the same time. This makes it a perfect place for property investment. There remains a lot of competition in the financial and investment sector. One more reason is that London is home to some of the richest people in the world.

The city is beautiful and a good place for both living and working purposes. Due to this all, there is a great shortage of nice houses in the city. At times, the rates of the property are way too higher than to be afforded. It is never easy to buy a home in such a red hot market.

If you are planning to move to London for residential purposes, you need a good amount of money so that you can buy a residential property for yourself. You can take a bridging loan in this situation which is far most the best option available. Even if you have an existing property which you plan to sell, bridging loan is always helpful in every situation.

In general, a bridging loan is a type of financial aid which is used in several situations, especially when you have to buy a new property but your old property is yet to be sold out. So bridging loan covers up the gaps between these two transactions. Though there are various ways this loan can be used.

Purchasing a Home in London using Bridging Loan

Bridging loan is the most suitable option available when you have to invest in a property. There are very fewer chances when a property owner who is selling his property receives a good offer on the property while they find a nice deal over any property in which they are planning to move. Hence this all leads to such an event in which the property owner finds it impossible to produce the fund proofs against the property they are willing to buy.

Hence, the property will still be available in the market and someone else may buy it. This way, the house owner who was eager to buy the property, will end up losing the deal since his previous property was yet to be sold out, due to which he couldn’t purchase a new property. In such a case, the bridging loan brings out the people from these situations.

Bridging loans help people to get cash access in situations of financial emergency. If you have an existing property which is to be sold and you want to buy a new property, the lenders will need proof of funds. Bridging loan saves you from every sort of trouble in such conditions.

Many buyers would find good deals on property in London. They use auction services which the local estate agents provide. A mortgage is a traditional option available for money but the process of mortgage is very lengthy, slow, complicated and it takes more weeks to finish. So, mortgages aren’t considered good for buying at auctions. Usually, you have to pay 10% of the total amount as a down payment at the time of bidding and rest of the 90% is to be paid within 28 days if you plan to buy a property from auctions. The other side cash buyers have sufficient cash and can pay the amount by the deadline. People who buy in cash remain in good condition since they have cash available with them so they can easily buy and acquire any property which is to be sold in the market.

So, if you have to buy a property in London at an auction, you are required to put your existing property on sale so that you can arrange enough funds from selling your old property which will secure the new property at the auction.

The bridging loan gives you access to capital in a short time and the process is also very simple. The application doesn’t take too long and you easily get the amount in your hands. This can be used to invest in buying any property in London. If you have a good deal but you don’t have cash at the moment, someone else might purchase the property.

We at Finanta help you in such situations. To know more about Finanta bridging loans in London, you can contact us and we will be more than happy to help you with our bridging loan services. Whether you need to buy a property or you need to invest in an existing property, we are always there for your help.

Suggestion Reading: Bridging Loan For Property Investment