Transcript
Is a bridging loan expensive? Bridging loans are a specialist product. So usually with that they carry a higher interest rate and ins and outs. So an average interest rate from the bank in today's market is about 6%. A bridging loan will usually factor in in the eights or 9%. Whilst it does sound expensive, it still might be the most feasible strategy between the other ways when it comes to buying and selling. As an example, you might try and do a buy and sell at the same time. A lot of
things need to line up because of that time frame pressure. You might have to pay more for the house that you're buying to have your offer accepted and you might have to accept an offer that's less on your sale again to line up all your contracts. So again, coming back to a feasibility piece, a bridging loan whilst sounds expensive on the outset, it could still be the better option if you weigh up all the avenues on the buy and sell process.