If you’re a retiree thinking about downsizing, or you’re someone on a career break without a regular income, you might be wondering: Can I still get a bridging loan to help me buy my next home before selling my current one?
The short answer is: Yes, you can!
While many traditional loans require proof of income and ongoing repayments, there are specialised bridging loans available that cater specifically to people in your situation.
How does a bridging loan work when you’re retired?
Some lenders offer bridging loans that don’t require regular repayments.
Instead, the interest is “capitalised”, meaning it gets added to the loan balance and is paid off once your current property sells.
This can be a lifeline for downsizers who have equity in their home but no steady income from wages or salary.
✅ No income? No problem
If there’s sufficient equity in your current home and you’re not carrying any debt after the sale, there’s no need to make repayments during the bridging period.
This means you can secure your next property and move on your own terms, without cash flow pressure.
🧾 What if there’s a shortfall?
If there is a residual debt (i.e., the proceeds from the sale won’t fully cover the new purchase), you can still apply. Many lenders will assess your situation using either full doc (with detailed documentation) or lite doc options (with more flexible income verification requirements).
📆 Flexible terms up to 2 years
Some bridging loans offer terms of up to 24 months, giving you plenty of time to complete your sale, settle into your new home, and plan your next steps.
Downsizing without the stress
The idea of moving in retirement should feel like a fresh chapter, not a financial hurdle.
With the right loan structure, it’s entirely possible to buy first and sell later, without the stress of juggling repayments or worrying about servicing a loan without income.
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