Bridging loans are used as short term financing option between buying and selling properties. Bridging finance assists buyers in buying a new property whilst in the process of waiting the sale and completion of their existing property.
Bridging loans offer a short term finance option that 'bridges' the gap between the sale of your property and outgoing payment of a new home. This type of funding allows people to complete the purchase of a property, where it would not be otherwise be possible. These are often used in cases where, for example, there is a breakdown in the property sale chain or when the market is going through periods of high demand and properties are selling quickly. Bridging finance can be organised within as little as a matter of weeks in some cases, and offers a great solution to be able to raise funds quickly.
There can often be reasons why buyers need to purchase their new property prior to the sale of their existing home going through. Bridging finance is used to 'bridge' the shortfall of finances during this time. Bridging loans can also be used for a range of other circumstances, as a short term loan for large amounts of money.
Bridging loans are also available to landlords and property developers, when buying a commercial or residential property at auction. In these instances a property needs to be paid in full within a very short period of time. This allows buyers to complete the sale during the period that their mortgage is being arranged.
Bridging loans can also be used for ‘unmortgageable’ properties to make them habitable, and as a result, worthy of a mortgage. Other reasons include:
It can sometimes be tricky to navigate the process of finding a bridging loan that suits your needs. There are a wide range of bridging lenders on the market, with each one being different from the other. With a vast number of options available, we advice the use of an FCA-regulated broker to assist you in finding the best deal to suit your circumstances.
Get in contact with Transparent Mortgage Services today to discuss your individual needs. We will source the best deal for you or offer advice on other financial products that may be better suited or a more affordable alternative.
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Bridging loans can be arranged quickly which is why they are a popular finance option. Once the best deal has been found and you are happy to proceed, your application can be approved often in as little as a day. Following on from this, you will receive and have access to the funds within two weeks.
Bridging loans have interest rates on them which is charged monthly, however in some cases it is possible to pay a single lump sum at the end of the term of your loan. Buyers can borrow up to £5 million pounds and depending on your existing equity, the amount will usually be capped at 75% of what you're securing it on. It is possible to secure your bridging loan against multiple properties in order to acquire adequate financing. This type of loan is not income based in-comparison to a mortgage.
Bridging finance is a short-term borrowing resolution which provides you with access to money quickly. The terms of these types of loans are often up to a year, however, longer terms can be available
Transparent Mortgage Services are independent brokers based East Sussex. We are authorised and regulated by the Financial Conduct Authority (FCA). Our mortgage advisors and finance experts proudly work with a range of clients across Bexhill and the surrounding areas. If you are looking for trusted advice on bridging finance or any other mortgage and financial products, we are the experts to help. Please contact our knowledgable team today.
