Do you need in initial deposit getting a bridging mortgage?

You may need way too much equity on the most recent property and an exit method if the selling falls owing to.

Bridging loans is not protected by Lenders Home loan Insurance (LMI), a one out-of advanced billed when credit more 80% of worth of property. That means you need around at the very least 20% of one’s height debt while the a deposit to help you buy the fresh new property.

As you haven’t sold your existing property yet ,, you will have to have this number due to the fact deals which you have amassed more than 90 days, which will be quite difficult to accomplish if you’re currently and work out mortgage payments. (more…)