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SELL YOUR HOME QUICKLYBridge over troubled waters: the perils of bridging loans for securing a quick home sale
As an experienced property investor MPG first began in the Greater London area and over the years we have expanded our service across the whole of the UK. In this time we have seen the UK property market become ever more complex making the challenge of securing or achieving a quick home sale increasingly difficult.
For the average buyer the first port of call will be a visit to local estate agent where they will put their home on the market and examine the details for various other properties in the area in which they wish to live. After many viewings of their own and to other properties they may eventually achieve that most straightforward of property exchanges. They receive a firm offer of a quick home sale on their existing property and at the same time have an offer accepted on their chosen new residence.
This is how we would all like a property sale to happen in an ideal world. However, more often than not the scenario is more complex. In many instances you find the house you really want, but you have not yet secured a quick home sale in order to release the finance to complete. The vendor on the other hand is desperate to move and although happy with your offer just cannot wait for you to complete.
Faced with this choice you can either let that dream home pass you buy or stretch yourself financially by buying the property and owning two properties with the hope that a quick home sale is forthcoming.
The common method of doing this is a bridging loan but there are a few of things you need to know before you commit.
- What if you cannot achieve a purchase for your property? It could be 12 months or more before completion.
- What if the market declines? Will you have the finance left from the capital achieved to pay off the loan or be left with a shortfall?
- Designed for short-term use these loans carry heavy interest payments and fees. Can you afford them?
- By securing a loan against your property are you putting your home at risk?