There are times that you may need some bridging finance to “bridge the gap” and often the bank will say NO.
I understand the reasons for needing to get some bridging finance and as a specialist non bank broker I have access to a number of options.
Within the finance industry there are two types of bridging finance situations;
The Open Bridge – this is where you are purchasing a property and have not yet sold your existing property. The banks do not like these types of situations as they always think the worst – that you will not be able to sell your existing property. The fact is that every property is able to be sold, but the question is how long it will take and how much it will sell for. When I arrange finance for an open bridge situation I will always aim to be conservative so you can sell for less if needed, but I will also look at the option of retaining the property (if needed) as well so that you are never in a situation where you feel pressured to sell if the market is a bit slow.
The Closed Bridge – this is where you are purchasing a property and already have an unconditional sale on your existing property. With a closed bridge situation you know what the values are and you know what the time-frame is so arranging finance to suit is easier, but still the banks often do not like this. As a non bank broker I will always consider your existing bank as the first option before looking at other ways to finance this.
These are the most common reasons for wanting bridging finance; however there are many more situations when some kind of bridging finance might be required.