Downsizers considering bridging finance to facilitate a move to a new home should be aware of potential challenges, particularly regarding interest rates. Bridging finance is a short-term loan designed to ‘bridge’ the gap between selling an existing property and purchasing a new one. It allows buyers to secure a new home before their old one is sold, a common need for those looking to downsize or relocate.

While bridging finance can be a useful tool, it’s generally associated with higher interest rates than traditional mortgages. This is due to the short-term nature of the loan and the increased risk for lenders. The high cost is a critical consideration for downsizers, who may be on a fixed income or looking to maximize their financial resources after selling a larger property.

The question of whether age impacts eligibility for bridging finance isn't explicitly stated, but lenders will assess applicants based on their overall financial situation. Factors such as income, credit history, and the equity in both the existing and potential new properties are key determinants. A strong financial profile will typically increase the chances of approval, regardless of age.

Downsizers exploring bridging finance should carefully compare rates from multiple lenders and seek professional financial advice to determine if it's the right option for their individual circumstances. Understanding the full cost of the loan, including fees and potential penalties, is crucial before committing to this type of financing.