Independent mortgage advice for bridging finance and equity release
Bridging finance
Bridging finance is a short-term loan that bridges the gap between when you buy a new property and sell your existing one. It gives you temporary funding security, so you can act fast on new opportunities without waiting for your current home to sell.
Benefits of bridging finance
- Move fast: Secure your dream home before someone else does.
Streamline the financing process: Eliminate the stress of selling your current property before buying a new one. - Maintain flexibility: Bridging loans are typically for three to 12 months, giving you breathing room for a smooth transition.
- Flexible payments: You could consider paying interest only during the bridging period.
Risks of bridging finance
- Dual loans: You’ll have two loans for a period, so managing payments on both is crucial.
- Delayed sale: Your current home may not sell immediately.
- Unforeseen debt: If your existing home sells for less than anticipated, you could end up with unexpected debt.
Remember, bridging finance is subject to specific lending criteria. adviceHQ can help guide you on the best options for your unique situation.
Equity release
Benefits of equity release
- Improve your cash flow: Access a portion of your home’s equity to free up capital. Unlike traditional loans, equity release doesn’t require monthly payments.
- Maintain financial independence: Fund lifestyle changes or manage unexpected expenses.
- Stay in your home: Unlike selling, you retain ownership and continue living in your property.
Risks of equity release
- Reduced inheritance: Equity release may impact the inheritance you leave behind.
Interest accumulation: Interest accrues over time, affecting the final amount you owe on your mortgage. - Long-term commitment: Consider the long-term implications of equity release before going ahead.
Important considerations
Bridging finance and equity release come with some important considerations. Here’s what to keep in mind:
- Interest rates: Bridging finance typically has higher interest rates than standard mortgages.
- Debt obligations: Carefully assess your ability to repay a bridging loan on top of your existing mortgage.
- Impact on equity: Equity release reduces the amount of equity you have in your home.
Why trust adviceHQ with your bridging finance and equity release needs?
We understand that financial decisions that impact your home can be complex. Our team of qualified and experienced advisors will guide you through all your options while considering your personal circumstances and financial goals. We’ll help you find the solution that bridges the gap towards your dream future.
Partner with adviceHQ and make use of our industry-leading expertise, personalised guidance, and comprehensive suite of services. Contact us today to explore your options and unlock the potential of your property assets.
