If you have bought or sold property before, you will be very familiar with a bridging loan. A bridging loan is often quite necessary, as not everyone has the extra cash needed to pay certain fees that were not part of the original mortgage.
With so many agents, banks and brokers to choose from, it is important to choose the right institution for your financial requirements, and your personal or commercial needs. Even better would be an institution who will tailor your bridging loan to suit your current circumstances. Read on for a short guide to bridging loans.
What is a Bridging Loan?
A bridging finance or loan is a type of short-term loan that can allow the borrower to access money quickly. A bridging loan is most commonly used to refurbish a property or to move into a new property whilst waiting for the current property owned to be sold.
Homeowners and businesses can borrow money with different rates and qualify for bridging loans that are available for different circumstances. Bridging loans are always secured against a property as security.
Bespoke Bridging Loans
There are different circumstances in which you would decide to use bridging finance, but you should always get advice from a reputable lender before you sign on the dotted line. Speaking to reputable lenders means that they will not only listen to what your exact needs are, but understand them and then tailor your loan for your specific situation.
There are no ‘cookie-cutter for all’ scenarios when seeking experts who can guide you financially and offer you a loan expertly worked out for your individual needs. Choose an experienced and transparent lender that will take the time to sit with you and discuss your requirements without rushing to close a deal.
These types of loans are a big decision and should not be entered into lightly with a broker or lender who is not interested in offering you a proper solution to your investment needs. Interest rates and other qualifying criteria should be applied to your unique situation and explained thoroughly.
Who May Need Bridging Loans?
Property owners, developers, investors or home buyers may all require a bridging loan for various reasons.
Bridging finance can be an excellent option if you are a property developer who is looking to refurbish a block of flats or an individual property and then sell at a higher price, but you need to borrow money quickly.
In the case of homeowners, when their current home has not yet been sold, this kind of loan enables them to get money quickly to purchase the new house and then be able to repay at a later date when their other property sells.
Ease and Convenience
Accessing funds speedily enables you to be able to get on with renovating or investing in a property as soon as possible, meaning that you do not need to experience unnecessary delays. Bridging finance can be accessible in around 2 to 4 weeks, compared to a mortgage which could take several months.
Getting a bespoke bridging loan can help you achieve your property goals quickly and conveniently.