The time it currently takes to sell a home in Spain has grown considerably. According to some industry experts, a house that is put on sale today will need between four and six months to find a buyer. This extension of time is making life difficult for people who want to purchase a property and have not yet sold their old house. The bridge loan solves this problem. It is a loan that finances the purchase of a newly built home before selling the old one, geared especially for those sellers who do not have enough time to sell your property in the best condition and need funding to cover certain expenses derived from buying a property off plan, as the reservation or signing writing. This type of loan, then, emerges as a possible solution to perform the two operations, buying and selling simultaneously.
The client requests a personal loan with a fixed term, which ends at the time of creation of the loan mortgage property off plan. This customer must agree to cancel your personal loan within a maximum, which typically ranges 12 months, with the money raised from the sale of their former home. The applicant also must take into account a range of interests, higher than for a traditional mortgage, hovering around 6% and 8%, plus the cost of setting up, management and termination. The reason for some interest so high is related to the nature of credit and uncertainty, since the formalization of the new mortgage depends on the sale of the old house. La Caixa, for example, is one of the banks that currently offer this product. This is the House x Home Mortgage. “With this mortgage you can now purchase a new house without having to sell in a hurry today, because you fund up to 80% of the value of the new house and also provide you with up to 80% of the value of your current home, can be read on the company website. Unlike other loans, credit negotiations bridge allows more open, since the maximum capital to the nominal interest differential or the maximum period and the gap. With respect to documentation to be submitted, the bank usually asks a photocopy of the DNI, the last income, payroll, an employment contract, the contract of sale and a simple note of the Land Registry to find that the housing This warranty is given as deeded in the name of the person concerned.