A bridging finance calculator has a number of uses, and by inputting your data correctly, you will be able to see exactly what you can afford to borrow, and what your repayments will be. This way, you know immediately whether bridging finance is going to be something that will help you out financially or cause you problems with repayments (and whether you will be able to borrow enough to do what you need to do).
One of the reasons you might need a bridging loan, for example, is if your chain breaks down during a house sale. Imagine if you have found your dream home, and it is everything you want, in your budget. Your home is under offer, you put an offer in and it is accepted. But then the unthinkable happens, and for whatever reason, your buyer pulls out.
In this scenario, you could easily lose the house you want to buy. A broken chain isn’t quickly mended. However, if you can obtain bridging finance, all is not lost. Even though you might not be able to complete the chain without a buyer for your property, the chain can be fixed with bridging finance.
This short term finance ensures that you can buy the property you want as a cash buyer, and then repay the loan when your old house sells. You can then take complete control of the situation, get the house that you want, and not have to worry about paying two mortgages, or even the finance itself until the end of the term, by which time you will have sold your property.
You will need to use a bridging finance calculator to make sure that all the figures add up, but if they do, and it means you can still buy that ideal house, it is certainly worth considering.