Congratulations! You’ve reached the well-deserved phase of life called retirement, where you can relax, enjoy, and cherish the moments that truly matter. However, we all know that life can sometimes throw unexpected financial needs our way. Don’t worry; there are options available to help you navigate these situations. One such option that you might find useful is a Bridging Loan. Let’s explore what this loan is all about and why it can be an excellent choice for pensioners like you.
What is a bridging loan?
A Bridging Loan is like a friendly bridge that connects the gap between your current financial needs and your long-term funding sources. It’s a short-term loan designed to help you out when you need money urgently. For instance, imagine you plan to sell your house to buy a new one but need some extra funds before the sale is complete. A bridging loan could come to your rescue, helping you access the money you need until your house is sold.
Why bridging loans are great for pensioners?
There are lots of reasons why a bridging loan may be a great choice for a pensioner, and below we have compiled just a few:
Quick and simple: Getting a bridging loan is usually quick and straightforward. It won’t require you to go through complicated processes or wait for ages to get the funds. Time is precious, and bridging loans respect that.
No stressful monthly payments: As a pensioner, dealing with monthly repayments can be a hassle. The great thing about bridging loans is that you won’t have to worry about making monthly payments. You can repay the entire loan amount at the end of the loan term when your money from selling the property comes in.
Flexible repayment options: Bridging loans are designed to fit your unique situation. If you want to repay the loan earlier than planned, you can do that too. They give you the freedom to choose what works best for you.
Short-term relief: These loans are meant to be short-term friends, not long-term companions. You won’t be tied down by long repayment schedules, making your life more peaceful.
How do bridging loans work?
Getting a bridging loan is not rocket science. Here’s a simple breakdown of how it works:
Check eligibility: To get a bridging loan, you’ll need to show that you have a stable pension income or assets like a property you plan to sell. Don’t worry; you won’t need to do complex math or remember your entire financial history.
Borrow wisely: What you can borrow will depend on the value of the property you’re selling or the assets you have. The loan amount will be a percentage of that value.
Say hello to interest: Just like any loan, you’ll pay interest on the amount that you borrow. However, since it’s a short-term loan, the interest won’t pile up too much.
Goodbye loan, hello home: When your property is sold or your long-term funding source is available, you can happily say goodbye to the loan. Mission accomplished!