You are looking to change your property and the bridging loan does not seem to you to be the right option, several financing solutions are possible. The bridging loan is a transition loan that allows you to acquire real estate before having sold the old property, this allows you to move into the new real estate and to be able to make the transition smoothly. 4 out of 10 French people who resell their property plan to buy a larger or better located one, which confirms the interest of offering suitable financing solutions.
However, bridging credit can be expensive and create stress because if the seller cannot be sold, it will be necessary to continue paying interest on both sides, thus plunging the owner into an unstable financial situation. The idea is therefore to find a solution through the repurchase of mortgage for example.
Avoid the bridging loan by buying back the credits
A banking solution can avoid this solution, it is the repurchase of mortgage credit. The idea is simply to buy the mortgage for the house or apartment currently occupied and ask the bank to finance the new property to buy with the same financing. The result, the owner has only one monthly payment to be reimbursed and he becomes the owner of his new property, without immediate resale of the first property.
He can thus organize the sale and if ever the house (or the apartment) does not manage to be sold, the owner can envisage other solutions like hiring for example. You just have to validate this acquisition and the financing through the mortgage buy-back, an important step.
Evaluate the repurchase of mortgage loan
The financing of a new property for an owner currently occupying is only possible if his borrowing capacity allows it (this capacity can be increased by extending the duration) and that if the guarantee proposed is a mortgage. Credit institutions specializing in mortgage financing have developed this financial product to enable borrowers who own their homes to invest in a new acquisition, a second home, or a rental property.
Replacing the bridge loan with the repurchase of mortgage credit, therefore, seems possible, it is still necessary to be able to measure this feasibility. This is precisely what makes it possible to do the online credit buyback simulator, a tool allowing you to quickly know if buying back home loan is possible. It’s free, fast, and without obligation.