Bespoke Mortgage Advice
What is Bridging Finance?
A Bridging Loan is a short-term financing solution, used to ‘bridge’ the gap, typically up to 12 months, that provides fast cash to solidify a deal in the interim until a long-term financing option can be arranged. It provides fast and flexible financing for a range of purposes and used by individuals, investors, businesses and property developers.
Why would you use bridging finance?
In the fast-paced world of property, bridging finance has become increasingly popular. It can be challenging to have simultaneous completions when you are in the process of selling one place and buying another. Or sometimes you cannot get a mortgage in time and need a quick solution to avoid losing out on the property.
Bridging loans can also be used to:
Purchase a property at auction
Finance unmortgageable properties
Buy land for property development
Increase business cash flow
Invest in projects overseas
Make tax payments such as capital gains, VAT and Corporation Tax
Closed Bridging Loans have a fixed repayment date. However, Open Bridging Loans do not have a fixed repayment date, although one would typically be expected to pay off the loan within 12 months.
How much finance can I get from a bridging solution?
Bridging loans are often provided by specialist lenders and are able to take security over a range of assets, e.g. property, stocks or shares. As a result it is sometimes possible to borrow a larger sum of money than other finance types and you can borrow as much as you want providing there is a verifiable way to pay the loan back with a given period.
Bridging loans are flexible solutions to match your needs so there can be several repayment structures tailored to you to reduce the pressure.