Bridge Mortgages in Mallorca and the Balearic Islands
Bridge Mortgages
Change Homes Without Halting Your Plans
What is a Bridge Mortgage?Change Homes Without Halting Your Plans
A bridge mortgage is a financial solution designed for those who wish to buy a new home without having sold their current one yet.
It allows you to have the necessary money to acquire the new property while the sale of the old one is being finalized, avoiding rushes, downward negotiations, or the need to rent temporarily.
The bank grants a loan that integrates the outstanding debt of the current home with the financing for the new one.
During an initial period, the payments are usually reduced, as they are designed to provide leeway until the first house is sold. Once the sale is complete, the mortgage is adjusted to the outstanding principal and the agreed-upon conditions.
It allows you to have the necessary money to acquire the new property while the sale of the old one is being finalized, avoiding rushes, downward negotiations, or the need to rent temporarily.
The bank grants a loan that integrates the outstanding debt of the current home with the financing for the new one.
During an initial period, the payments are usually reduced, as they are designed to provide leeway until the first house is sold. Once the sale is complete, the mortgage is adjusted to the outstanding principal and the agreed-upon conditions.
Who is a Bridge Mortgage Designed For?Change Homes Without Halting Your Plans
This type of mortgage is ideal for families, couples, or individuals who have decided to change their primary residence in Mallorca or the Balearic Islands but do not want to give up their desired home because they depend on the sale time of the previous one.
Advantages of a Bridge MortgageChange Homes Without Halting Your Plans
Bridge mortgages have many more advantages and benefits than risks and critical points to consider.
Some of the most notable advantages are:
Some of the most notable advantages are:
Allows you to buy your new home without having to wait to sell the previous oneAvoids underselling the current house due to an immediate need for liquidityProvides time flexibility to find a buyer at the right pricePossibility of lower payments at the beginning of the loan
Risks of Bridge MortgagesChange Homes Without Halting Your Plans
Bridge mortgages are very useful, but they require a serious financial analysis.
When operating under a bridge loan, you risk very uncomfortable situations, and to avoid this, you must know some of the key risks to avoid:
When operating under a bridge loan, you risk very uncomfortable situations, and to avoid this, you must know some of the key risks to avoid:
The bank sets a deadline for selling the current homeIf it is not sold within that time, the financial burden can increaseIt is essential to correctly calculate the borrowing capacity to avoid compromising the family’s financesAt AvalTeca, we explain all scenarios in detail so you can make a safe decision without surprises.
Common Requirements for a Bridge MortgageChange Homes Without Halting Your Plans
Although each institution sets its own conditions, they usually ask for:
Be the owner of a home that is already mortgaged or free of liensHave sufficient income to cover the payment during the bridge periodCommitment to sell the current home within the established timeframeIn some cases, appraisals of both properties
AvalTeca’s Role in Your Bridge MortgageChange Homes Without Halting Your Plans
Negotiation
Negotiation with banks to obtain flexible and transparent conditions
Evaluation
Evaluation of your financial capacity before starting the process
Report
Clear explanation of all necessary steps and documents
Always with You
Advice on the sale of your current home to ensure the timelines align
Your opinion is the most important thing
Customer Testimonials
We were fortunate to have Jordi as our mortgage broker, and we could not be more satisfied. From the first moment he offered us a close, clear and professional treatment. He accompanied us throughout the mortgage process, resolving every doubt quickly and efficiently, and today we have been able to complete the purchase of our home thanks to his excellent work. Totally recommended!
Francisco José Copete García
A very good experience with the personalized treatment that Jordi has towards his clients, you immediately gain confidence with him, as if he were your trusted friend. Thank you very much Finance Luxe Group for getting me and my wife the house we wanted. I recommend it 100%.
Marc Manrique
We went to ask for information because we wanted to build our house with a mortgage. They have guided me in both the mortgage and the appraisal. Totally recommended, especially a special thanks to Jordi.
RT Abogados y Asociados
I want to thank all the advice I received to acquire my first house. From the first communication, Jordi was fully aware of every detail, resolving all my doubts and accompanying me in the process. In less than 29 days he managed my mortgage with the best possible conditions. The most important thing is that he showed me great responsibility, commitment and professionalism. Do not hesitate to consult him. People like Jordi are much needed in our society.
Alicia Franco
Thanks to their services we were able to have the mortgage at 90% with an interest rate of 2.25. Great professionalism and very attentive at all stages.
Rafa Morales Alguacil
Frequently Asked Questions (FAQs)
If this FAQ section doesn’t answer your questions, don’t hesitate to contact us.
What is a bridge mortgage?
It’s a loan that allows you to buy a new home while you sell your current one.
How long does a bridge mortgage last?
Generally between 2 and 5 years, depending on the bank and the transaction.
What happens if I don’t sell my home within that period?
The conditions are renegotiated, or it converts into a traditional mortgage, although with a higher cost.