We understand that sometimes you may require a short term funding solution to assist with you’re a future plans. Northern Property Finance can advise on the option of bridging finance to help assist with an onward purchase or help fund a project.
What is bridging finance?
Bridging finance is essentially a short term funding option available to assist with the purchase of a property. A bridging loan is specifically designed to offer quick, secured lending against an asset, delivering short term property loans that solve financing requirements. There are many lenders who offer short term funding solutions, such as bridging loans, to enhance the market and provide solutions on all types of residential and commercial property transactions.
Our advice is tailored to suit your needs and our broker will help identify the positives and negatives of short term funding solutions.
The main facts about Bridging Loans:
- Short term with a maximum term of 24 months
- Designed to assist with an onward purchase
- Used for residential and commercial purposes
- Repayment strategy required
- Funding up 65% generally available subject to criteria
- Up to 100% funding available with additional security
Short term bridging finance is ideal for:
- Auction Properties
- Capital Raising
- Commercial Purchase
- Investment Properties
- Property Conversion
- Development – Residential & Commercial
- Semi-Commercial property
How bridging finance could help you:
A bridging loan can provide an alternative solution to your funding requirements, and sometimes assist with in situation where normal mortgage lenders cannot. They are designed to offer short term funding that requires repayment within the selected term.
A bridging loan could offer a business the opportunity of purchasing new premises that requires refurbishment or re-development, or for residential purposes where you may be looking to purchase a property that requires work or renovation. A bridging loan is a unique solution to your funding requirements and is assessed on a case by case basis; our advisor is on hand to answer any questions you have and to establish whether bridging finance is right for you.
It is important to identify that a bridging loan is a short term funding solution and requires a planned repayment strategy. Lenders may decline an application without confirmation of how you plan on repaying the loan.
Top tips to consider when applying for bridging finance:
- Bridging finance is a short term lending option with a maximum term of 24 months
- There is no minimum term for a bridging loan
- It is a requirement that you have an achievable repayment strategy to repay the loan within the selected term. This can be from the sale of the asset, capital lump sum or refinancing options
- It is important to consider the costs associated with a bridging loan. This is a specialist product and interest rates can potentially be higher than normal mortgage lenders. They typically commence at 1% of the loan per month on total borrowing over the selected term.
- The loan is secured against the asset or additional security
- Bridging finance can offer short term reliable funding available at a fast, efficient pace to avoid delays in time and business.