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A bridging loan is a short-term finance option which can serve several purposes.
There are two types of bridging loans:
Our team of experienced advisors have secured many bridging loans for our customers, helping them to access quick finance when they need it the most. Complete our simple form today, and we will be in touch to discuss your options.
Bridging loans provide quick access to short term finance. They are used for a variety of purposes including:
Providing finance to facilitate the onward purchase if a buyer drops out of a chain. With your house packed up and a completion date agreed, removal company booked, if your buyer pulls out a bridging loan can mean you are still able to carry on with the move.
People buying properties at an auction need quick access to funds to complete the sale within 28 days or risk losing their 10% deposit. A bridging loan can provide the finance quickly to secure the deal until a mortgage can be arranged on the property.
If you need to move before selling your existing home, for example, relocating for work, a bridging loan can allow you to buy the new property before selling your existing property. The bridging loan is repaid when the property is sold, and equity is released, with a new mortgage funding the difference.
For buy-to-let property purchases, investors can find that the process is long and complicated. Bridging loans offer quick access to funding, as well as providing an option for properties that are unmortgageable in their current state. If the property is uninhabitable, a bridging loan can provide finance to perform renovation work, allowing it to be mortgaged.
Yes, bridging loans can offer an option for businesses to access finance quickly.
If a business owns commercial property and needs a cash injection, bridging loans can release funds while a remortgage is in progress.
As a short-term finance option, you can expect to pay higher rates on a bridging loan - anything between 0.5% to 1.5% a month is typical.
This is clearly considerably more than the rates on residential mortgages. You can also expect to pay more in the way of fees than on a residential mortgage.
You can borrow anything between £25k to £25m on a bridging loan, typically capped at 75% of the value of your property.
As a whole-of-market broker, our team of advisors have access to deals not accessible to the general public.
Whatever your situation, we will help you to get the best deal possible on your bridging loan. Complete our simple form today to get started!
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.