Bridging Loans

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Bridging loan uses

Investors are increasingly using Bridging Loans as a useful way to expedite the completion of their proposed transaction.

Traditional lenders, especially on buy-to-let mortgages, will often put 100% retention on a mortgage if the property has no kitchen, no bathroom or is in poor condition and therefore classed as unmortgageable, they may even refuse to lend altogether until the property is in a better state of repair. This can be frustrating, especially if the cost of works is very little and can be completed in a short period of time.

You may have found your perfect home but are unable to sell your current house within the necessary time frame. In these situations a bridging loan secured against your current home in order for you to transfer your equity or current residential mortgage to your new property, may only be the way forward. You will then repay the bridging loan from the proceeds that are generated from the sale of your current home.

Bridging loans can be available to those who have an existing mortgage on their property ...
... and can be offered on a first or second charge basis. A Charge will be put on to the existing property. This service can be useful if you have a significant amount of equity in your property, require funds for a short period of time (less than one year) and would prefer a short term loan rather than a remortgage or a further advance on your current mortgage.
The security property can either be property you already own or one which you intend to buy with a bridging loan.
You may need to source bridging funding quickly to take advantage of an investment opportunity or a chance to purchase some land or property at a reduced price.

If residential property is bought at auction you will need to pay a 10% deposit immediately and raise the balance to complete the transaction within 28 days. We can provide this bridging loan funding at short notice for a period up to 9 months.
The bridging loan is usually repaid through a remortgage with a high street lender or when the property is sold.
A bridging loan can also be used to give your business a cash flow injection, perhaps to assist in purchasing of stock or paying a tax or VAT bill.

Bridging loan funds can be secured on your residential or commercial property and repaid in as little as 1 month from your business once cash flow permits.

The aim of a bridging loan is to make the funding process straightforward and assist in obtaining the necessary finance within the shortest period of time.

The security property can be secured on any type of property with a commercial or residential bridging loan. A bridging loan can be sourced with speed to take advantage of a business opportunity or a chance to purchase commercial property at a reduced price.

Commercial Bridging finance can also be used to improve your business facilities or expansion of a workshop or offices or perhaps to improve or extend a warehouse. Bridging loan funds can be secured on your business premises also.