Bridging loan

Bridging loan – the funding you need, when you need it.

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What is a Bridging loan?

A bridging loan is a form of short term finance. It’s normally secured on property and can be useful in a wide variety of situations.

The reason short term property loans are termed “bridging loans” is that they provide a bridge between two points – where you are now and where you want to be.

Bridging loans are therefore short term, typically up to 12 months but sometimes longer where there’s a definite need.

The gap being bridged could be then repaid, normally by refinancing the property or selling the property.

A bridging loan is much faster to arrange than a normal mortgage so – where speed is of the essence, choose a bridging loan.

Why Acorn.finance

We’ve been arranging funding since 1997 and, if you’ll forgive us for boasting but we think we’re quite good at it!

In fact – 7 x UK Best Broker Awards back us up in that assertion, so does our 5 star customer feedback.

So -for your buy to let mortgage needs, or anything else funding – make sure you use a broker you can trust.

About Acorn.finance

Bridging loans & their uses

property development finance

What can I use a Bridging loan for?

The range of uses for a bridging loan come down to 3 main categories, speed, inability to raise a mortgage, intention to repay quickly;

  • The need for speed;
    • Auction purchases which often have a 28 day completion window.
    • Negotiating a purchase based on a “cash” price.
    • Fitting in with external factors.
  • Problems getting a mortgage;
    • The property might not be suitable for mortgage without refurbishment work.
    • You might prefer to make alterations before mortgaging the property.
    • You may need to improve the Energy Performance (EPC) before the property can be let.
  • Plans to repay quickly
    • “Flipping” the property – selling soon after purchase being refurbished or just having time to make the sale.
holiday let mortgage - property finance

How to get a great bridging loan

As with any finance product, the quality of the bridging loan you get is directly related to how good a case we can put together for your bridging application;

  • The applicants;
    • Your experience and ability to complete any works.
    • Financial situation.
  • The plan;
    • Are your plans for the property feasible, legal and costed?
  • The exit (repayment) plan;
    • For a remortgage, will a mortgage be available?
    • Is the finished value (GDV – Gross Developed Value) realistic and rent (if applicable) sufficient?
    • For a planned sale is the finished property able to be sold in a realistic time?

Contact us now on 0808 164 2364

Acorn.finance – 4th Floor, Silverstream House, London. W1T 6EB

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