Bridging Arrangements
Temporary finance offered by some lenders to cover the time between the settlement of a new property being purchased and receiving funds from the sale of a previous property. Bridging finance is usually in the form of an overdraft limit with an interest rate equivalent to the current home loan floating rate. Borrowers need to show they have the cashflow to service both loans.
More Glossary Terms
- Assets
- Auction
- Body Corporate
- Borrowing Costs
- Break Costs
- Bridging Arrangements
- Capital Gain
- Capital Value (CV)
- Capitalise
- Capped Loans
- Certificate of Title (of CT Reference)
- Chattels
- Commission
- Company Title
- Conditional Agreement
- Credit Contracts and Consumer Finance Act
- Credit Report (or Credit File)
- Creditor
- Cross Lease
- Current Market Value
- Debtor
- Declaration
- Default
- Default Margin
- Deposit
- Depreciation
- Discharge of Mortgage
- Dividends
- Drawings
- Equity
- Equity Release Mortgage(or Reverse Asset Mortgage)
- First Mortgage
- Fixed Interest Rate
- Fixed Term (or Fixed Rate Period)
- Floating Interest Rate
- Freehold
- GV or Government Valuation
- General Loan
