Bridging Finance

First of all, what is Bridging Finance? Why would you need it?

Bridging Finance is the type of funding that helps you bridge the gap between borrowing for your new home and selling your old home.

To be honest, you need a strong amount of Equity to borrow using Bridging Finance as you aren’t able to get Lenders Mortgage Insurance with this type of loan (at the time of publication)

There are different ways to calculate Bridging Finance and it can be made up of something called (ICAP) Interest Capitalised where you add the interest of the 2 loans over say a 12 month period OR where you make interest only repayments from your savings to cover the difference.

Either way, Bridging Finance is one that is best done with your trusted broker so it can be done in a way suitable for your needs!