Bridging Loan to Stop Repossession
Bridging loans are a type of short-term finance, which can offer a solution if your home is under threat of repossession. Taking out bridging finance secured against your home can allow you to quickly raise the money to clear your debts, protecting your home for the near future.
Bridging loans are usually offered with loan terms of anything up to 18 months, although longer repayment periods may be possible depending on the circumstances. You can often get a bridging loan within a matter of days, which can be a big advantage where speed is of the essence.
Should you use a bridging loan to stop repossession of your home?
Using a bridging loan to stop your home being repossessed is only a temporary solution, as the bridging loan will need to be repaid in the near future. Bridging finance also tends to be more expensive than most mortgages, so you will need to factor the additional interest and fees into your financial plans.
Generally, a bridging loan will tend to make sense if you plan to then sell your home as soon as possible to clear your debts. Using a bridging loan allows you to retain control of selling your home, buying you time and allowing you to look for the best price.
If you allow you home to be repossessed your mortgage lender will likely look for a quick sale, meaning they will accept a lower price than you would. Using a bridging loan can therefore leave you in a better financial situation than allowing your home to be repossessed.
How to get a bridging loan to stop repossession
To get a bridging loan you will normally need to go through an FCA regulated loan broker as most bridging finance providers do not lend directly to the public. You will also need to have enough spare equity left in your home to secure the bridging loan against.
You will also need to provide an exit strategy to the lender i.e. explain how you intend to repay the loan. In the case of a property under threat of repossession, this will normally require you to be planning to sell the property.
Find the best interest rates on a bridging loan to stop repossession
Using our free bridging loan calculator you can quickly and easily find a bridging loan to stop repossession at the most affordable rate. You simply need to share basic information about your borrowing needs and finances and we will do the rest, finding you the most attractive deals from across the market.
Need a bridging loan to stop repossession? Get in touch with our friendly expert team of loan brokers using the contact form on the right or by calling 0117 313 6058.