The Bridge Loan

The time that currently takes to sell a House on property in Spain has grown considerably. According to some industry experts, a House that goes on sale today will need between 4 and 6 months to find a buyer. This lengthening of deadlines makes it difficult to people who want to buy a property and have not even sold his old House. The bridge loan solves this problem. It is a credit that financed the purchase of a newly built house before selling ancient, oriented, above all for those sellers who do not have enough time to sell your property in the best conditions and need financing to cover certain expenses arising from the purchase of a home on plane, such as booking or signing the deed. This type of loan, therefore, emerges as a possible solution to carry out two operations, purchase and sale, simultaneously.

The client requests a personal loan, with a fixed term, which will end at the time that the loan be formed mortgage housing on plane. This client must commit itself to cancel this personal loan in a maximum period, which usually oscillates the 12 months, with got money from the sale of your old home. The person concerned also have to take into account a number of interests, higher than those for a traditional mortgage, hovering around 6% and 8%, in addition to opening, management and cancellation costs. The reason for such high interest rates is related to the very nature of the credit and its degree of uncertainty, since the formalization of the new mortgage depends on the sale of the old House. La Caixa, for example, is one of the banks that currently offers this product. It is the House mortgage House x. With this mortgage you can now buy a new home without having to sell the current in a hurry, because we finance up to 80% of the value of the new House and, in addition, we provide up to 80% of the value of your current home, you can read on the website of La Caixa. Unlike other type loan, bridge loan allows negotiations more open, since the maximum capital until the nominal interest rate, the differential or the maximum term and lack. Regarding the documentation that must be submitted, the Bank usually ask for a photocopy of the DNI, last income, payroll, an employment contract, the contract of sale and a simple note of the property record that finds that housing supplied as collateral this writing on behalf of the person concerned.