Bridging loans are a type of short term finance that can cover a gap in financing in certain situations including when buying a property at auction (where payment is required quickly) or to help you renovate a property which is currently unable to be mortgaged. It is one of the fastest ways to get finance so can also be used to ease business cash flow problems or avoid a repossession. You can get a residential or commercial bridging loan - A property must be over 40% commercial for a commercial bridging loan.
Commercial Bridging Loans:
Can be used to cover a short term gap in financing a commercial property when a mortgage may not be suitable
Can be arranged quickly - normally between 3 days and 3 weeks
Usually have a minimum loan amount of around £30,000
Often have no early repayment charge
Normally are repaid between 1 and 18 months
Require a viable exit strategy to prove you will be able to repay
If you need short term finance and think a bridging loan could be suitable, please get in touch with The Mortgage Hut and speak to one of our commercial mortgage specialists.