Residential Bridging Loans
Residential bridging loans are short term loans that are used by people buying or dealing in residential properties. These loans are used to bridge or fill a financing gap between your buying a new residential property and selling your old one. Normally, such a loan is obtained where the need for financing is urgent and cannot be met by traditional mortgage loans from banks.
Lenders for residential bridging loans don’t emphasize your ability to pay back the loan. Rather, they look at the value of your current property versus your loan amount. The loan is thus secured against the property you are looking to sell. The exit strategy would thus either involve selling your current house and paying off the loan from the sale’s proceeds, or refinancing the new property with a second mortgage.
Our residential bridging loans at Galaxy Finance typically have terms of 12 to 18 months. Interest rates depend on the merits of each individual residential loan application and the lending institution you use.
Situations Where You Would Use A Residential Bridging Loan?
A typical example where a residential bridging loan would save the day is where you intend to up/downsize to another residential property that more appropriately meets your changing accommodation needs.
If you are banking on using proceeds from the sale of your current property to put in an offer on your earmarked property and the buyer who had put in an offer on your current house suddenly pulls the offer, you would be left with a serious funding gap. The funding gap would also jeopardise any deposit you may have paid on the new property.
Paying for a second home while you await an offer on your first
If a prospective buyer for your current property abruptly pulls out, you will need to quickly find another buyer so the offer you have also put on the new house you are eyeing isn’t put in danger. But obtaining a bridging loan to pay for your new property while you get another offer for your current one is in many cases the easier option.
You can also obtain a residential bridging loan for buying a second home even without any offer on your current home. You will just have to satisfy us that your exit strategy is solid.
Buying a house at auction
Another scenario where you can use a residential bridging gap to secure emergency funding is where you have bought a house at auction. Normally properties bought at auction will have to be paid for in full within a specified time, typically 28 days. The loan will help complete the purchase while you organize more long term funding.
However, besides funding property purchases, residential bridging loans can be used in a variety of ways. You can use the loan for remodeling your house, adding a new bathroom, refurbishing, installing a new roof, extending it with new rooms, and anything else that can add value to the property as a whole.
As long as we can agree on the loan amount, how it will be used, and the exit strategy you are proposing, we will approve you for a residential bridging loan.
Who Should Apply For Residential Bridging Loans?
Galaxy Finance’s residential bridging loans are perfect for young professionals who have yet to build enough credit to successfully apply for high-value mortgage loans from banks. They are also a viable financing means for property owners looking to upgrade to a new home but who have poor credit that reduces their chances of getting mortgage loans from banks.
Galaxy Finance has a wide range of quick and flexible bridging finance solutions for both business and residential clients. Get in touch with our residential bridging loan experts here today to discuss your needs.
As a growing bridging finance lender, to us every customer counts. Beyond that, we set up the business because we believe we can make a difference. Even if its just a couple of people, if we can help save their businesses from collapse or their homes from foreclosure, whole families and entire communities will be impacted. This is what motivates us and reinforces our customer focus.
Tech-Powered Innovation Strategy
Technology drives our product innovation processes. We use it to expedite our underwriting procedures, improve our marketing, and come up with new products that have a better market fit. Yes, technology has made the future less certain, but in a way that makes it exciting because you know a new technology can suddenly open up new opportunities.
Accessible To All Market Groups
We are in a race to make sure everyone who needs bridging finance can access it. It is why we exist. We believed there are market groups that had long been neglected and which we could bring into the mainstream economy through accessible short tern loans. At Galaxy Finance, everyone is welcome.