Bridging Loans

Many people assume bridging loans are an effective way to stop house repossessions, but this is rarely the case. Instead, a bridging loan will provide short-term relief and long-term problems, such as huge fees and super-high interest rates.

If you’re facing repossession, HomeKeep Solutions can help you find a permanent solution that doesn’t include bridging loans. To find out more, contact our experienced team 24/7 now.

HomeKeep Solutions can help you find a permanent solution that doesn’t include bridging loans.

“I thought I’d exhausted all my options and was doomed to failure but HomeKeep Solutions quickly resolved the situation and negotiated with my lender. – Aidan B

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What Is a Bridging Loan?

A bridging loan (or “bridge loan”)  is a short-term secured loan designed to “bridge a gap’” usually during the sale of a property. If you’re purchasing a new property but your existing house is still on the market, for example, you could use a bridging loan to fund the purchase and pay it off when your current home sells.

There are two different types:

How to Deal with a Court Hearing

There are three main ways you can respond to a repossession court hearing:

  • 1
    Regulated Bridging Loans: These loans are regulated by the Financial Conduct Authority (FCA) and can be used when the borrower lives in or plans to live in the property that is being used as security.
  • 2
    Unregulated Bridging Loans: These loans are not regulated by the FCA and are mainly used commercially when the borrower doesn’t and will never live in the property that’s being used as security.

Although commercial bridging loans have been used for some time, regulated bridging loans are becoming increasingly popular among homeowners. While they can be beneficial in some circumstances, it’s important to understand the negative consequences that can arise before you take out a bridging loan to try and prevent your home from being repossessed.

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Can You Use a Bridging Loan to Stop Repossession?

People often assume that taking out a bridging loan to stop repossession is a good way to avoid eviction and retain their property, but this simply isn’t true. A bridging loan (or ‘bridge loan’), is designed to be a temporary form of finance, whereas paying off arrears and avoiding repossession usually requires a workable, long-term plan.

A Damaging, Short-term Solution

Bridging loans usually only last for 12 months or less. Once the term of the bridging loan expires, the full amount (plus any interest or charges) becomes payable. If you fail to pay the loan back in accordance with the term, you’re likely to find that you’ll be charged an even higher rate of interest until the loan is fully repaid or your home is repossessed.

In addition to this, bridging loans generally have very high fees and very high interest rates, which means your debts can spiral if you attempt to use this type of financing to avoid home repossession. Fortunately, there are other ways to prevent house repossession that are far more effective. To find out how you can keep your home, talk to HomeKeep Solutions experts 24/7.

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FAQ

When you’re facing eviction or being forced to sell your home, taking out a bridging loan to stop repossession can seem like an obvious solution. However, the term of a bridging loan is usually 12 months or less and you’ll need to repay the entire loan plus interest when the term expires.
As most people are unable to do this, a bridging loan simply delays the repossession process and increases the amount you owe.
Brokers and bridging loan companies are often quick to reassure borrowers that this type of finance can help to avoid home repossession, but you shouldn’t take them at their word. There are many instances of brokers and bridging loan companies reassuring borrowers that they will be able to afford the repayments when the numbers simply don’t add up.
Before you agree to anything, be sure to get independent financial advice that you can trust. This will help you to avoid being mis-sold a bridging loan. If you already have a bridging loan, you may be able to take action if you’ve been mis-sold. In the meantime, HomeKeep Solutions can help you to put a workable plan of action into place to protect your home without increasing your debts.

If your home is at risk of being repossessed, HomeKeep Solutions can help you to resolve the situation and keep your property, without taking out a bridging loan. With advice and assistance from our experienced team, you can find out what your options are and take the next step to securing your property and retaining your home.

Our Reviews

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“I can’t thank you enough for helping me keep my home! I’d had no luck trying to reason with my mortgage lenders, but the HomeKeep Solutions team acted quickly and negotiated a long-term payment plan that’s affordable and realistic. As a result, I’m no longer facing repossession, an enormous amount of stress has been lifted and I can begin enjoying life again.”
John O
“I was near breaking point by the time I called HomeKeep Solutions and I’m eternally grateful for the compassionate advice they gave me. Within days, their team had stopped my eviction and given me respite in the most difficult of circumstances. Now, I can look forward to a bright future – in my own home!”
Shirley L
“I was days away from eviction when I called HomeKeep Solutions and was convinced there was no hope but, to my surprise, you stopped the eviction and made sure I’d be able to stay in my home. Your friendly, professional advice made a world of difference during such a stressful period in my life, and I’ll never forget the help you provided.”
Lloyd S
“I’m so grateful to the HomeKeep Solutions team for helping me keep my home and supporting me when I had nowhere else to turn. I was convinced my home would be repossessed but, thanks to you, I’m back on track and secure in my own home.”
Taylor P
“I thought I’d exhausted all my options and was doomed to failure but HomeKeep Solutions quickly resolved the situation and negotiated with my lender. Not only can I stay in my home, but I can face the future knowing that my property is no longer under threat of being repossessed. Thank you.”
Aidan B
“I didn’t know where to turn for help when a repossession order was granted but your team was instrumental in stopping the repossession and helping me to keep my property. I don’t know where I would be without you and I’m eternally grateful for your expert advice and knowledgeable support.”
Neil S

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