Recent reports in the financial press suggest more homebuyers are taking out bridging loans so that a purchase can proceed before they have sold their existing property. A shortage of supply in sought-after locations has made some buyers reluctant to lose a property that they really want.
If you are selling your home and buying another, you will usually aim to complete the two transactions back-to-back. You can then use the income from your sale to fund your purchase, and there is generally a chain of interdependent transactions where each buyer, except the one at the bottom of the chain, relies upon selling their own property before they can proceed.
‘Taking a loan, which helps you bridge the gap between acquiring your new home and later completing the sale of your old one, can let you…