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| Bridging
finance is a form of short term finance, typically
used when a property chain falls apart and finance
is required to bridge the gap to repair the break
in the chain enabling everyone to complete as planned.
However there are a variety of other uses for bridging
finance which are outlined below. Bridging finance
can be an expensive way of raising money, but it
serves a purpose for many people by offering a flexible
solution compared to some other methods available.
Loan terms vary from as little as one day, up to
around 12 months (longer terms can be considered
for development finance). Lenders will charge administration
fees, but most do not charge any exit fees. Interest
payments can be rolled up or deducted at the outset
in many cases, alternatively you are able to make
monthly payments. Interest is charged daily by most
lenders and is dependent on the amount borrowed
against the property value. It is important that
you have planned a way of repaying the bridging
loan once the term comes to an end, whether it be
from the sale of a property, refinance or another
method. You can use a range of different property
as security, including, residential and buy to let
property & commercial property of most types. |
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Short term capital
raising |
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Bridging finance is a great way of raising
capital, especially where time is of the essence. Funds
can be released in 24 hours in some cases but typically
around one week. If you are struggling to obtain finance
through the bank, or you are waiting for a loan or mortgage
to be agreed, then bridging finance can offer a temporary
solution.
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Cashflow |
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If you are experiencing short term cashflow
troubles then bridging finance is a fast and easy way
of solving these problems until cashflow improves. |
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Renovation / refurbishment
/ development |
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If you have found a property which is
not suitable for a conventional mortgage in it's present
condition, or you wish to improve the value before taking
out a mortgage to allow you to borrow more against it,
bridging finance can be used to purchase the property
and allow you some time to make the alterations before
applying for a mortgage. |
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Buying at auction |
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Buying at auction is one of the most
popular reasons for taking out bridging finance. The finance
can be agreed last minute, allowing you to make a property
purchase where it is expected that you proceed swiftly.
We can arrange bridging finance for you with little notice,
giving you peace of mind when purchasing property at auction. |
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If you wish to find out more about how bridging finance
may be suitable for you or would like to arrange a quote,
please contact us on 01628 663666 or by
email
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Member of the
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| Note that bridging
finance is not normally regulated by the Financial
Services Authority |
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The
guidance and/or advice contained within this website
is subject to the UK regulatory regime and is therefore
targeted at consumers based in the UK
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