While most homeowners will be content with owning a single home, some may wish to extend further. The concept of investing in a second property might seem excessive to some, but there are many reasons why owning more than one property makes plenty of sense. While it’s a large-scale investment, you can actually help to grow your income by investing in a second home. of course, getting the finance together to make that possible can be tough – that’s why loans are so popular.
Getting the correct property finance package together can be tough, though. First off, you need to ask yourself, quite simply, if you are ready to take on a second investment of this kind. From making sure you have a suitable credit score to get the best loan to handling all of your current debts – credit cards, present mortgage etc. – there’s a lot you need to think about.
For example, a lot of people often choose to go down the route of getting a bridging loan. Put simply, a bridging loan will act as the ideal property finance package. If you have decided to sell your present home to get a new home, then this kind of loan acts as a financial bridge to help you get from one home to the next.
Why would I choose to go for a bridging loan?
- For one, a standard mortgage loan is often far more regressive than in the past. You will find they often com with a litany of red tape, added fees and associated costs. Add in the time it can take to get the loan in the first place, and the property that you dreamt of buying could be off the market.
- By comparison, a bridging loan can be completed in days. This allows you to get the quick financial access that you need to make a proper offer for the home and get the process started.
- Whether you need the finance to get the ball rolling or to buy time until the property you are selling is finished being developed to be sold on, bridging loans offer a fast solution to the problem of waiting around.
- Also, a bridging loan helps to make sure you can get the property finance quickly, without being held back by the same limitations of a mortgage loan. Credit history checks are far more lenient, meaning that you will be much more likely to receive aid with a bridging loan than other kinds of loan.
- Lastly, most of the time a bridging loan is built on your property value rather than your monthly payment potential. While you still need to make the payments, you can often get something higher than you would with a normal mortgage purely based on the cost of the property.
With this in mind, then, you might be able to see why this kind of loan makes plenty sense for a bridging loan. While many reasons exist to go down the route of buying a second property, you’ll often find that a bridging loan allows you to move properties quickly without having to wait around.