The property industry can move fast and opportunities can come and go in days at times. Sometimes it’s necessary to complete a quick purchase or to refinance an existing asset in a short period of time and that’s why it’s essential to have the right funding available to you first time around.
At Compare bridging, our specialist property bridging loans finance team can help with your requirements. With years of experience securing fast bridging loans, we have developed a strong network of the UK’s quickest and most flexible lenders meaning the best possible result for you.
What is a short term bridging loan?
A short term bridging loan is a type of finance that can be useful if you need to borrow money for a short period. It can help to ‘bridge the gap’ if you want to buy a new home before selling your old one. Bridging loans can also be used if you buy a property at auction, where you’ll need the money immediately but may not have sold your current property yet.
Bridging Loans could be described as relatively short term “interest only” loans, usually setup for a maximum term of 12 months in length and normally do not require monthly payments, do not have exit penalties if repaid within the agreed term and are often used when other more traditional forms of finance such as mortgages are not available.
The two types of “traditional” bridging loans are : open bridging loans and closed bridging loans, both of which are explained on their own respective pages.
On most bridging loans interest is normally only liable for the amount of time that the loan is used i.e. if a loan is arranged for 12 months but repaid after 3 months and 6 days, interest is usually charged and repaid on the loan for the 3 month and 6 day period and not for the full 12 months.
The reason that applicants are refused traditional finance or where traditional finance is not suitable are varied and the most common bridging loan example would be:
- because the applicant is older than the new acceptable age limits for mortgages
- the applicant may be asset rich but cash poor i.e. not enough income proof to pass the required affordability calculations needed to obtain a mortgage
- the applicant may have poor credit which is not acceptable for mortgage finance
- the property may be classed as not standard security for a mortgage i.e. the property could be without a kitchen or bathroom or generally in need of much modernisation making it not habitable. In which case an incomplete property loan is the ideal choice for you.
- the seller may only accept offers from buyers who are chain free such as cash buyers or buyers with bridging finance
- the finance could be required for a development opportunity
- it may be that the finance is needed for additional borrowing such as a 2nd charge
- the funds may be needed urgently or for a specific requirement which are not allowable in the world of mortgage finance, such as borrowing for an urgent business need
- the money may be just for a flexible or short term requirement
- the borrower wants minimal fuss
- the borrower wants to purchase a new property but the deposit is not yet liquid and tied up in another property yet to be sold
Key Features for bridging loans for short term finance needs:
- Loans up to 100% of purchase price
- Terms from 1 month
- No upfront fees
- Rates from 0.29% PCM
Fast finance and quick decisions in 24 hours not days.
Need finance in a hurry? We’re unrivalled in the industry for our ability to source fast bridging loans that are tailored to suit your needs.
We understand that speed and flexibility is everything when it comes to bridging loans. That’s why we ensure that your application is not only precisely tailored to meet your needs, but gives the funder the understanding and comfort they need to agree the deal.
A big part of this process is our team of bridging finance brokers who make sure your application reaches the right funder first time around, reducing the amount of time it takes to get the finance you need completed.
Bridging finance: What can I use it for?
Every case is different, and each individual bridging loan is treated as so, however we are committed to providing a high-quality and transparent service to all.
Bridging loans can be used for a number of purposes. We see this finance used for the following examples:
• Property purchases
• Refinancing
• Temporary cashflow problems
• Short-term working capital
• Auction purchases
• Renovation projects
• Investors taking advantage of short term opportunities
Want to speak more about Bridging Funding for short term finance needs? complete the online enquiry form, and a bridging specialist will contact you by return.
