Bridge loan for mortgages: buy a new property before the old one is sold – here's how!

You already live in your own house or flat and have now found your new dream home? The joy of your new home is quickly joined by the first symptoms of stress at the thought of the financial challenges. This is because buying a new property at the same time as putting your current one on the market often results in a financing gap. In short: the old property has not yet been sold, but you already need another mortgage to finance the new one. Banks in particular are often reluctant to take part in such an endeavour, as they do not agree to a double charge. The banks also call this ‘lack of affordability’. This is where bridge loans come into play.

Bridge loan – what is it and for whom is it worthwhile?

Bridge loan – also known as bridge financing – is a temporary financing solution in the context of mortgages that helps buyers bridge the gap between the purchase of a new property and the sale of their current property. While you sell your old home in peace, a bridge loan finances the purchase of the new property. This allows you to realize your dream home step by step. The resulting flexibility also allows you more time to sell your old property at a good price.

Banks are often inflexible here and do not have suitable solutions for this model – the reason is the tighter affordability due to the double burden: existing mortgage on old property and new mortgage on new property. At LEND, we find more flexible solutions and fully utilize the financing potential. This means we can fulfil your dream of a new home, and you can sleep more soundly.

Bridge loan with LEND – how it works

At LEND, we specialize in mortgages – especially tailor-made mortgages. As we are not a bank, we also find solutions for difficult issues such as loan-to-value and affordability. In addition to bridge financing, our solutions include

• Increasing your own funds for a property purchase

• Increasing an existing mortgage for more liquidity

• Subordinated mortgages (e.g. second mortgages)

• Reverse mortgages / Retirement mortgage

• Increased debt financing to increase the return on equity

We support both private individuals and companies.

The process is very simple: make an enquiry on our mortgage page and our team will get back to you with a personalized financing proposal tailored to your situation or that of your company. And ‘customized’ is not just a buzzword for us: from the term to the repayment method, we tailor the loan to your needs. Try it out!