These are loans are ideal for people who want to raise money quickly on property.
They can be used for helping to purchase a property at auction. Another reason for raising the money is to finishing developing a property as if the property does not have a working kitchen and bathroom then it’s not habitable therefore not mortgageable. Rates and charges do vary from lender to lender on this one so please contact us
Bridging Loans Q&As
Bridging loans can be used for any purpose the borrower sees fit. Typical uses for a bridge loan include property refurbishment and development, the purchase of a new home whilst waiting for an existing property to sell, the settlement of tax bills and other business-related cash flow problems.
Bridge loans are only intended as short-term borrowing products and most bridging lenders will expect the loan to be repaid in full within the agreed timeframe.
Bridge loans are short-term property finance products that enable the borrower to complete one property transaction whilst waiting for another to finalise. A bridge loan can be secured against any suitable residential home or commercial property, or some other real estate asset such as land.
Bridging loans work in many ways. The typical loan will have the interest on the loan roll up onto the balance.
They normally only have a short term for lending, generally no more than 12 months as there must be a “repayment strategy” in place. This means exactly what it says, how do you intend to repay the money. For example, if you have enough money for a deposit on a house you wish to buy but have not sold your own home, you can always get a bridging loan on the property you wish to purchase and then once the property you are selling has been sold you can repay that money. Another way is the option to remortgage the property to repay the bridging loan.
Mortgage Saving Experts has access to many bridging loan lenders. Some of who are Precise mortgages, United Trust Bank and many more, however, like many lenders their criteria and rates do vary massively so get in touch with our expert advisers to see what your options are and some quotations.
Some bridging loans are regulated by the FCA. An example of one would be where you are obtaining a bridging loan where you intend to live in the property. This would be regulated by the FCA.