Bridging loans or bridging finance are short-term interest-only loans taken out by clients needing immediate access to funds for a property purchase and/or development. Bridging finance is ideal for those who might find themselves in a contract race or needing auction property financing. It is a short-term loan to ‘bridge’ the gap – or in other words provide some breathing space – while other finance is secured.
Bridging Finance can be used for various financial requirements, for example time sensitive cases such as:
Examples of what our bridging finance can be used for…
Where bridging finance is required to enable the transaction to complete speedily.
Often where speed is essential or the property may be unmortgageable. Bridging finance can fund the purchase until the traditional mortgage is ready to exit.
Property requires refurbishment and is then either added to a portfolio or sold at completion. Once completed, and tenants are in place, a standard Buy-to-Let mortgage can refinance the exit, in the mean time the bridge supports the purchase and refurbishment. Alternatively the client sells the property once refurbished and redeems the bridging finance
Bridging finance can step in until the bank is ready with it’s overdraft/invoice discounting, so client’s business opportunity is not missed.