A bridging bank loan is a short term property loan. It is a temporary loan that “bridges” the sale of a commercial residence and a standard mortgage.
Bridging loans, by their characteristics higher risk than classic property or company loans, bear a higher interest rate in addition to more points. Because they are amoritorized over a shorter period of time, generally for a duration of a couple weeks to a few years, these loans cost more. This too works as a bonus for the owner to acquire permanent financing.
Purchasers use bridging finance whenever money is required in a very short period of time, for instance to stop a foreclosure or to benefit from an opportunity that won’t last long enough for traditional loans to be received. As a result of nature of these financial products, home loan calculators usually are not of much use. Lenders employ the remortgage calculator to set the term of a classic loan that is to be used to pay off the bridging bank loan, as it utilizes exactly the same house as collateral.