Bridging loans 'aid quick property purchase'

If homebuyers in Belfast and Northern Ireland whose finances are stretched were to take out a bridging loan, it could mean less people being pursued by solicitors for debt.

However, bridging loans should only be used in the short-term, otherwise solicitors could see homebuyers in Belfast and Northern Ireland even more mired in debt for taking out the extra credit.

Bridging loans allow homebuyers in Belfast and Northern Ireland to finance the gap between purchasing their new property and selling their old one.

However, solicitors may be more likely to see commercial property investors in Belfast and Northern Ireland taking out this type of loan to secure another property for their portfolio, due to the risky high interest rate.

Lee Tillcock, editor of Business Moneyfacts, said: "The need for bridging finance can rise during times of financial duress. Repossessions are already increasing and the subsequent increasing number of lots can only serve to benefit property professionals looking for to acquire property quickly at competitive prices.

"Investors buying at auction have often used bridging because they are required to complete within a few weeks of a successful bid when conventional mortgages are sometimes unworkable."

He added: "Bridging finance is ideal for any situation where funds are required quickly and for short periods; it can be used to help buyers move fast, often where a distressed vendor needs to realise the value of their property for a quick sale."

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