Bridging Finance enquiries will be referred to a master broker
What is bridging finance?
Bridging finance is essentially a short term funding option available to assist with a property purchase. A bridging loan is specifically designed to offer quick, secured, short term lending against an asset. Lenders are available to enhance the market and provide effective financial solutions for both residential and commercial property transactions.
The main facts about Bridging Finance:
- Short term with a maximum term of 24 months
- Designed to assist with an onward purchase
- Used for residential and commercial purposes
- A planned loan repayment strategy is required
- Funding up 65% generally available subject to criteria
- Up to 100% funding available with additional security
Short term Bridging Finance can assist with:
- Auction Properties
- Capital Raising
- Commercial Purchase
- Investment Properties
- Property Conversion
- Development – Residential & Commercial
- Semi-Commercial property
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 a Bridging Loan:
- 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.
- 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 funding available at a fast, efficient pace to avoid delays