Bridging Loans
What is bridging?
A bridging loan is short term finance secured against a property, usually taken out for no more than 12 months but there are scenarios where we can up to 24 months if required. One of the benefits of a bridging loan is the option to either ‘service’ the monthly interest payments or have them ‘retained’ or ‘rolled up’ where you would make no monthly repayments whilst the facility is in place and would pay it off in one lump sum upon sale or refinance of the property.
When would you take out a bridging loan?
- Chainbreak – Complete the purchase of your new home before the sale of yours goes through
- Auction purchase – Bridging finance can release funds within 4 weeks, ideal for those short deadlines on an auction purchase
- Non-Mortgageable properties – use the funds to secure the property and complete the works required for it to become mortgageable.
- Home Improvements – increase the value of the property through renovation works and refinance or sell at the new value. If this is done correctly, you can pull all your money back out and move on to the next project.
How does it work?
- Complete the ‘Eligibility Checker’ and one of our advisors will call you to discuss your options.
- Provide details on the loan purpose and exit strategy.
- We will issue terms on the facility within 24 hours.
If you are happy, we can then get the application submitted and your funds are usually released in approximately 4 weeks.
