BENEFITS OF BRIDGING LOANS
A bridging loan is a form of short-term finance, designed to help individuals take advantage of investment opportunities quickly or overcome a particular financial situation.
Funding is made available against the value of an existing or acquiring property, allowing our clients to capitalise on time sensitive opportunities without having to endure the lengthy application process put in place by most mainstream lenders.
- Access to fast funding, avoiding property chains and securing time sensitive deals i.e. auctions, repossession prevention, and bargain properties
- Offers the perfect financial product to renovate or refurbish a property to a standard in which a lender will approve a mortgage application due to their stringent tick box criteria
- Property investors can capitalise on high return opportunities, by accessing funds quickly for conversions and extensions which can significantly improve the value of the property
- The ability to raise more capital quickly by securing the debt against any existing assets in a property portfolio and avoid missing any deadlines
- Managing short term cash flow issues such as tax liabilities, repairing adverse credit and supporting business cash flow where mainstream banks are not flexible
USE OF BRIDGING
Bridging loans have a variety of uses when it comes to purchasing and refurbishing property.
Here are a few examples of the common uses of bridging finance that we put in place for our clients:
Purchasing property from an auction
In order to complete a purchase from an auction, the buyer must pay for the property within a certain timeframe. Obtaining a mortgage from a high street lender is often impossible under such strict time constraints, therefore a bridging loan is the ideal way to raise the finance required quickly, ensuring you adhere to the auction time scales.
If a buyer pulls out of purchasing your property at the last minute, it can leave your own commercial objective in jeopardy. Arranging bridging finance means you can continue with your acquisition and provides you with extra time to sell your own asset.
Buy-to-let landlords adding to their portfolio
If you are keen to add a new property to your portfolio, but you do not want to miss the opportunity whilst your bank approves your application, bridging finance is the perfect solution. Bridging loans allow you to raise large sums of cash, fast – without going through a lengthy application process.
If you are a property investor applying for a loan, it can take a long time if you do not have the funds ready to purchase a property outright. With our bridging finance you can purchase the property you have in mind promptly, while making other arrangements for the long-term financing of the asset.
If you are looking to purchase an investment property to develop or renovate in order to sell on, a bridging loan can help you. Most institutional mortgage lenders require property to be in a “habitable” condition before granting the loan. Bridging finance buys you time to renovate the property to a standard where lenders will be happy to fund your purchase.
HOW DOES IT WORK?
HOW TO APPLY FOR A BRIDGING LOAN
Simply take a look through the range of bridging loans we provide and call us if you require a bespoke product not offered on our website.
Talk to us! You can send us a message via our contact form, or you can call our office in order to talk to one of our trained advisers. We will be glad to tell you a little more about who we are and what we can do, as well as how we can assist you with your short term funding requirements.
We will ask you to complete an application form for your bridging finance. Once we have received this, we will start the process of valuing the property you are borrowing against, while instructing our lawyers to draw up the paperwork for the funding.
Once the legal process has been completed, we will disburse the bridging finance directly to your solicitors for your immediate use.