When Would A Bridging Loan Be Right For A Pensioner?
Bridging loans are a versatile borrowing tool, but best serve retired people when looking to release equity from their homes or downsize.
When looking to move home before your current property has sold, a bridging loan can be used to fund any financial shortfall and can be a more manageable lending alternative to a long-term loan alternative like a mortgage.
This can be especially useful when looking to refurbish your current home before selling, to maximise the sale price.
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Latest Bridging Loan Offers For Pensioners
View some of the latest pensioners offers from leading lenders.
How Would My Bridging Finance Application Be Assessed?
Unlike mortgages, your income and credit history are not the most important factors when assessing a bridging finance application. The key factor in underwriting a bridging finance application is your method of repaying the loan.
This is known as your ‘exit strategy’. As such, we may be able to lend, even if you have minimal income.
Lenders assess each application on its own merits and as long as you have a reliable exit in place, there is a good chance that we will be able to help.
How Much Does Bridging Finance Cost?
When looking to take out short-term bridging finance with an expert broker for a property that you either have or will be living in, we can offer interest rates from 0.48% per month.
Rates for pensioners who are looking to downsize tend to be near this level due to the equity that has often built up in their property.
In addition to the interest charged, there is usually a lender arrangement fee of 1-2% of the bridge loan amount.
The interest charged is usually able to be added to the bridging loan, meaning there are no monthly repayments to make. Instead, any fees due are paid when the loan is repaid, usually when your property is sold. Our team are available to provide any further information you require on what’s available, the best interest rates and whether bridging finance is the best option for you.
Bridging Loans For Care Home Fees
When moving into a care home, funds are often needed to cover fees. This can be tricky due to age and lack of earned income. In this situation, we offer bridging loan lending to cover any fees and can manage the process for you from start to finish.
We work with lenders across the market to secure the lowest rates.
Does Bridging Finance Have A Maximum Age?
No, we work with lenders who take a common-sense approach to application assessment. As such, we can offer bridging loans with no maximum age, where appropriate.
The Key Features Of Bridging Loans For Pensioners
We can offer bridging loans for pensioners with the following key features:
- Rates from 0.48% per month
- No maximum loan sizes
- No broker fees
- No exit fees
- 1-month minimum loan term
- No monthly payments
- 1st or 2nd charge loans available
Choosing The Right Bridging Finance Options For Retirees?
Although they can provide real benefit for borrowers, bridging loans need to be taken out responsibly and after careful thought. Before taking out a bridging loan, carefully consider your options, compare options from more than one lender and ensure you have a solid repayment strategy in place.
About The Author
This content was produced by our Commercial Lending Director, Gary Hemming. Gary has over 15 years’ experience in financial services and specialises in bridging loans, commercial mortgages, development finance and business loans. He is widely respected in his field and regularly provides expert commentary for specialist trade publications, specialist business press as well as local and national press.
Gary Hemming CeMAP CeFA CeRGI CSP -
Commercial Lending Director
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