Bridging loans are a short-term funding option. They are used to ‘bridge’ a gap between a debt coming due – and we’re talking primarily about property transactions, here – and the main line of credit becoming available. Or they can simply act as a short-term loan in pressing circumstances. They can be invaluable in facilitating a property purchase that otherwise would not be possible. But as you might expect with a stop-gap measure, they can be significantly more expensive than a ‘normal’ loan.
What are bridging loans and how do they work?
Bridging loans are designed to help people complete the purchase of a property before selling their existing home by offering them short-term access to money at a high-rate of interest. As well as helping home-movers when there is a gap between the sale and completion dates in a chain, this type of loan can also help someone planning to sell-on quickly after renovating a home or help someone buying at auction. As banks and building societies have grown more reluctant to lend in the wake of the financial crisis, there has been an influx of bridging lenders into the market. As the cost of a bridging loan is higher than a more traditional loan, an exit strategy is important. Exits are usually via refinance or sale on the open market. There is a massive range of bridging lenders to choose from, so it is essential to have an understanding of the intricacies and mechanics of such facilities so the most appropriate and cost-effective option is utilised, from the right lender. We can fast-track you through the process and identify the most suitable option quickly.Please
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Get Bridging Finance Loans In London
Are you planning to buy a new property in London? Berkshire Capital Finance offers express bridging finance loans for borrowers who need to make small or large payments.
Our bridging finance loans are intended to enable customers to acquire a home before selling their current property by providing them with short-term cash at a high-interest rate.
This form of financing can assist home-movers when there is a gap between the selling and completion dates in a chain, those wanting to sell a home fast following renovations, or those purchasing at auction.
Thus, with a unique approach to business, we aim to provide fast solutions at market-leading rates to help homeowners fix cash flow problems while providing a reliable and straightforward exit strategy.
For more details, feel free to get in touch with us!