Can First-Time Buyers Get Bridging Loans? Here's What You Need to Know

You might think that short-term bridging loans are only for experienced property investors, but they're actually becoming more popular with first-time buyers.

A bridging loan is simply a short-term property loan that helps you complete a purchase quickly. For first-time buyers, they're useful if you've found a property that needs a lot of work, or if you've spotted an amazing deal that requires fast action.

What's interesting is that lenders care more about the property and your repayment plan than your income or credit score. This includes options for non-status bridging loans, where there are no credit checks.

You'll need a 20-25% deposit, and you can borrow from ￡150,000 upwards. The loan usually runs for 12-24 months, giving you time to either sell the property or refinance to a traditional mortgage.

Unlike standard mortgages, there are no monthly payments (the interest is rolled up and paid at the end), and they can be arranged in just a few days. Plus, you can use them for properties that mortgage lenders might turn down.

Of course, there's a trade-off - bridging loans come with higher interest rates and fees than standard mortgages. You'll need to factor in arrangement fees (around 2%), legal costs, and valuation fees.

But if you've found the perfect first property and need to move quickly, a bridging loan could be your answer. Just make sure you've got a solid plan for repaying it.

Want to learn more about how bridging loans work for first-time buyers, including detailed costs and criteria? Check out the full article: https://www.bridgingfinancelondon.com/can-a-first-time-buyer-get-a-bridging-loan/

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