Finding the perfect property for your needs doesn’t always fall at the moment that you are ready to move. Whether it’s buying a property at auction or you are looking to downsize but haven’t sold your home and need to release the equity quickly, we can help you to finance a short-term bridging loan.
What is Bridging Finance?
Available for both residential and commercial property, a bridging loan is generally quick to organise, usually taking just one to two weeks to arrange and sometimes faster depending upon your circumstances. Bridging finance can be used to facilitate any project with borrowing usually available up to 75 per cent of the value of the asset.
What can Bridging Loans be used for?
Although often used when buying a property at auction – where funding is released around 20 days after the deposit is paid – a short-term bridging loan can also enable you to purchase a house, land, shop or office unit before you have sold your current home or commercial premises.
A short-term bridging loan can also be used by property developers to finance an investment site which they intend to develop and sell at a profit, before moving on to another project. Development finance can be used for new-build property or property conversion with an initial payment followed by staged payments of funding throughout the development. A bridging loan can even be used to refurbish a buy-to-let investment to bring it up to market standard before it is released as a rental property.
Getting the most out of Short-Term Finance
The key to using a short-term bridging loan effectively is to know your exit date and stick to it. A bridging loan attracts a higher rate of interest and may also involve some additional administrative costs, so having a strategy to repay or switch to a more traditional mortgage product is important.
Whether you require funding for as little as 48 hours, a month or even a year, a bridging loan can provide an excellent solution to make your property plans a reality. With extensive experience of organising bridging finance solutions for clients in a wide variety of circumstances, we can help to find the right short-term loan for you.