Short term finance secured on property
What is a Bridging Loan?
A bridging loan is a short term loan, usually secured against property. Used for a variety of situations, typically for speed or to finance an unmortgageable property.
You need Bridging finance to bridge the gap between two points;
Purchase or refinance of a property & remortgage or sale of the property
Interest is typically part of the loan which means you won’t have to make interest payments during the term.
Uses for Bridging Loans
There are many uses for bridging finance, we could write blog posts on each of the bridging loans we’ve arranged over the years and never run out of different scenarios.
The main considerations are how quickly we can arrange your bridging loan and the fact that you do not need to make monthly payments to service the loan (although this can be an option in some situations)
That makes a bridging loan ideal for;
- Time sensitive purchases ~ less underwriting means a much faster turnaround for an auction or “cash” purchase
- Refurbishments and conversions ~ so you don’t need to make payments until the property is let or sold
- Chain-breaking and downsizing ~ don’t miss out on your dream property
- Business lending ~ utilise your property equity to grow (or save) your business
- Undervalue purchase ~ lenders will lend on the value rather than purchase price for a true BMV (below market value) purchase
What can a bridging loan be used for?
Can I get a 100% bridging loan?
Bridging loan rates and costs
What is bridging finance?