Bridging mortgage or home-move mortgage

We help you get your bridging mortgage in Málaga on the best terms. We filter the mortgage market and negotiate directly with each lender to secure you the best conditions.

We arrange your bridging mortgage and help you sell your house

We arrange your home-move mortgage Free if you buy with us, and we take care of selling your house so you don't have to worry about a thing.

Thanks to our property and finance departments and our large teams of professionals, we can give you a complete service from the start to the end of the process.

We'll sell your house while you're already enjoying your new home, and we'll also get you your bridging mortgage on the best terms.

We take care of everything to save you time and money. We assign you a personal advisor who will be with you throughout the process and keep you informed at every step.

Request your free financial advice and we'll tell you all the steps and requirements to get your bridging mortgage.

We'll advise you on the terms of your mortgage, repayments, term and everything you need for peace of mind. Our advice is completely free and focused on guiding our clients.

Steps to get a home-move mortgage

Here are the steps we take to get you the best home-move mortgage:

• Financial advice: we build your profile to tell you the mortgage requirements and conditions.
• Submitting the mortgage: we submit your mortgage to different banks on your behalf according to your needs.
• Negotiating the terms: Once we have a response from all the banks, we negotiate directly with each one to lower the interest rate and secure you the best terms.
• Choose your mortgage: all the bank offers will be presented and explained to you so you can choose the mortgage you want.
• Valuation: we manage and accompany the valuer
• Support at the notary: on the day of signing before the notary, your personal advisor will be with you, just as throughout the whole process.

What is a home-move or bridging mortgage?

Normally, if you want to move house, you sell yours and use the money to buy the other one and to pay off your outstanding mortgage. But what if you can't or don't want to sell your current home yet? Taking out a bridging mortgage may be the solution.

A bridging mortgage is a product that lets you buy a home while you still can't sell your current one. The bank makes it easier for the customer to pay lower repayments until they sell their current mortgaged property.

In other words, a bridging loan can suit you if you have a house with an outstanding mortgage, can't (or don't want to) sell it yet and want to buy a new home.

The bridging mortgage is a very interesting option, yet little known.

It is a loan that lets you buy a home while you sell your current one, which is also mortgaged. Starting from the original mortgage, the loan amount is increased and a second guarantee is added, corresponding to the new home.

While the sale is in progress, a grace period is usually applied in which the customer only pays interest. Once the home is sold, the outstanding amount for the first guarantee is paid off, leaving "live" the mortgage loan linked to the new home.

How a home-move or bridging mortgage works

1. Taking out the bridging mortgage

The bank will grant you a mortgage loan on both homes: the one you're buying and the one you don't want to or can't sell yet. In other words, you'll have two mortgaged houses with the same loan. You'll have to use the money lent to pay for your new property and to pay off the mortgage you had on your other house.

 In general, with a bridging mortgage you can pay off the loan on the house you can't sell yet and finance between 80% and 100% of the purchase of your new home, with a maximum repayment term of around 30 years. Its terms, of course, will depend on the bank that grants it and what you can negotiate.  

2. Lower repayments until you find a buyer

The lender granting the bridging mortgage will normally give you between six months and five years to sell your old property, depending on its policy and what you can negotiate. During that time, you'll enjoy a capital grace period, meaning your repayments will be interest only (no capital). In other words, you'll pay very low monthly instalments until you manage to sell your house.

3. Selling your previous home

When you find a buyer within the period the bank gives you, you can use the money from the sale to pay off part of the debt (the equivalent of the mortgage you had before) and free your old house from charges. From then on, you'll have a conventional mortgage on your new home and pay normal repayments made up of capital and interest.

Advantages and disadvantages of a home-move or bridging mortgage

Advantages

 More time to sell: you can finance the purchase of a new home and you'll have several years to sell your current property.

 Easier repayments: until you manage to sell your old house, the bank will charge you very low repayments because it applies a capital grace period.

Disadvantages

 It's riskier: if you don't manage to sell the house within the time the bank gives you, you'll lose the grace period and have to pay very high repayments. In the worst case, if you can't afford those instalments, you risk losing both homes.

 Your current home may lose value: if the economy worsens over the coming years, your house may lose value over time and sell for less than you expected. That hurts you, because you'll be able to pay off less debt after the sale and you'll be left with a larger mortgage (and higher repayments).

Requirements for a bridging mortgage

We won't lie to you: just as a bridging mortgage makes life easier if you want to buy a new house but haven't sold the one you already have mortgaged, it also carries risks. That's why we only recommend applying for one if these conditions are met:

• If your house is "sellable": a bridging loan isn't advisable if you'll struggle to sell your home because it's in poor condition or in a bad location, for example.
• If house prices are low: that way, if you sell your house in a few years, you're more likely to get more money than if you sell it now.
• If you can afford the repayments in case you can't sell your house: the amount without the grace period shouldn't exceed 35% of your net monthly income.

Apply for a bridging mortgage

We arrange your bridging mortgage for you and save you trips and wasted time. Request financial advice from our advisor, who will tell you everything free of charge.

• Keys to getting the best bridging mortgage

  What matters is that you know your strengths and weaknesses in the eyes of the banks and negotiate with every lender to find the best mortgage. Remember that a bad mortgage can turn a home purchase into a failure, which is why it's important not to settle for the first mortgage you're offered.

  Shop around the banks and negotiate every mortgage term hard to secure the best interest rate.

What matters is that you know your strengths and weaknesses in the eyes of the banks and negotiate with every lender to find the best mortgage. Remember that a bad mortgage can turn a home purchase into a failure, which is why it's important not to settle for the first mortgage you're offered.

Shop around the banks and negotiate every mortgage term hard to secure the best interest rate.

• What alternatives are there to a bridging mortgage?

  If the conditions in the previous section aren't met or the bank won't grant you the bridging mortgage, there are other options you can explore. You can see them below:

  • Wait until you sell the home. If you don't want to take too much risk or you're not sure, wait until you sell your house and use the money to buy a new one (with or without a mortgage).
  • Extend the mortgage on your current home. If you don't want to wait, you can ask your bank to increase the capital of your mortgage to buy a new home. The downside of this option is that you'll pay higher repayments, because you won't enjoy a capital grace period.
  • Take out a second mortgage. If the extension isn't approved, you can apply for another mortgage loan to buy a new home. It's not the most advisable option, because the process takes longer and you'll pay two mortgages at once, which greatly increases the risk of default. If you do, make sure you can afford both monthly instalments.

If the conditions in the previous section aren't met or the bank won't grant you the bridging mortgage, there are other options you can explore. You can see them below:

• Wait until you sell the home. If you don't want to take too much risk or you're not sure, wait until you sell your house and use the money to buy a new one (with or without a mortgage).
• Extend the mortgage on your current home. If you don't want to wait, you can ask your bank to increase the capital of your mortgage to buy a new home. The downside of this option is that you'll pay higher repayments, because you won't enjoy a capital grace period.
• Take out a second mortgage. If the extension isn't approved, you can apply for another mortgage loan to buy a new home. It's not the most advisable option, because the process takes longer and you'll pay two mortgages at once, which greatly increases the risk of default. If you do, make sure you can afford both monthly instalments.