A Mortgage as Bridge Financing
Posted by admin on January 19, 2008 in Finance :: Mortgage & Debt
Mortgaging is seen as a type of “bridge financing”, which is a type of financing where one can maintain liquidity while awaiting a flow of cash that will be reasonably expected to arrive. When you apply for a mortgage, you ability to pay is of course, taken into consideration by the bank or whatever body is giving the mortgage loan. This means, while you may not be able to pay for a property immediately, you can be reasonably expected to do so over an extended period of time. Thus, only people with steady sources of income or collateral are allowed to take on a mortgage loan.
