Help Funding the Purchase of Assets & Property
Regulated bridging finance is where the person borrowing the money live, or have lived, in the property that we’re trying to secure funding against. Unregulated bridging finance basically covers everything else, from commercial units to land or development funding.
When Should I Use a Bridging Loan?
Scenarios where Bridging Loans may be Best Used
- After buying a property at auction - Typically, a 10% deposit is paid on the day at auction, and the rest within 28 days. A bridging loan could be used as they are set up quickly, ensuring that the purchase will complete on time.
- Business cashflow problems - Whatever the reason, a bridging loan could be a way of easing the pressure on your business’s cashflow or working capital.
- Inheritance tax - There are numerous charges in the tax world, so using a bridging loan when having to release charges on property and other beneficiaries is perfectly acceptable.
- Renovation purposes - If a property is unsuitable to reside in or to get a mortgage on, bridging finance can be secured against the property. This could be useful if you’re a property developer who wants to buy a property, restore it and then sell it on.
- Repossession prevention - If your property is about to be repossessed, a bridging loan can be used to pay off the debt, passing control back to you (the owner of the property) so that you can sell it on your own terms and avoid a forced sale.
Isn’t Bridging Finance Expensive?
This type of finance is an easy way to raise money because there are less questions asked by the lender than there are in your more conventional mortgage process, meaning it’s also used sometimes used to purchase property quickly. However, it should be noted that, with bridging finance, you’ll need a plan for exiting the loan, as it’s seen as short-term funding, usually spanning from 1-18 months. The exit can be anything from the sale of the asset to raising other finance, like a commercial mortgage, against it.
Our team are on-hand to help you through the process and ensure that you have a plan in place so that everything runs smoothly.
Speak to a Bridging Finance Specialist
- No hidden fees to worry about
- Applications decided on value of the property, not whether you can meet payments or the purchase price of the property
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