Bridging credit instead of mortgage? Advantages and disadvantages


What is a bridging credit?

What is a bridging loan?

Interest rates on mortgages continue to rise and banks will no longer provide you with 100% of the value of your property. A bridging credit is an intermediate loan that is used to bridge the time to claim a regular building savings loan. The advantage of this intermediate loan is its quick settlement and the fact that you can draw it in large amounts. However, building societies also lay down the conditions for obtaining a bridging credit. But it reaches more people than consumer credit. Learn more at

Here are the biggest advantages of a bridging credit

Here are the biggest advantages of a bridging loan

The bridging credit is a compromise between a mortgage and a classic consumer loan. You will get a higher interest rate than a mortgage, but for its purpose the interest rate is still relatively low. You can use this type of loan immediately and repay it at any time. Building societies offer bridging credits secured by real estate even without real estate collateral, which you will appreciate when buying a cooperative apartment.

What are the disadvantages of a bridging credit?

What are the disadvantages of a bridging loan?

You can only use bridging credit money for housing needs. Experts say that this type of loan is most suitable for paying minor renovations and repairs. Monthly interest is paid on the entire target amount and is the same for the duration of the loan. Extraordinary installments in the bridging credit phase are subject to a fee according to the current tariff. Building societies check the creditworthiness of the client and may require a guarantor. Pay attention to various fees, for example for arranging building savings.

What is a bridging credit for?

What is a bridging loan for?

The bridging credit is intended for the acquisition, construction or reconstruction of an apartment and house. You can also finance the purchase of building land or you can pay the transfer of membership rights and obligations in a housing cooperative. This loan is also suitable for converting non-residential premises into flats, for refinancing other housing loans, or for settling inheritance or joint property of spouses in connection with housing.