Bridging loans and bridging finance
What is bridging finance?
Put simply, high speed, secured funding.
Bridging finance is suitable for property acquisition or re-mortgage for any legal purpose.
Bridging finance can be more expensive to arrange than long term finance; however the benefits can far outweigh the costs of buying it.
If you need money in a hurry; to purchase or re-mortgage, owner occupied or investment properties, we can help. Most types of security property are acceptable, including some types of long leaseholds:
- Factory Units
- Office, primary, secondary and tertiary locations
- Residential Property
- Properties with restricted usage i.e. 11 months Holiday Let
Bridging companies assess the viability of a deal based on three
Valuation: We generally select bridging loan lender’s that will work off the “open market value”, rather than the purchase price. Use of this “built in equity”, can potentially reduce your input capital to virtually nothing on a purchase.
This can mean 100%/95% funding could be available. High Street lenders invariably work off the purchase price, taking no account of a 'good deal' and built in equity.
Interest: Interest rolled into the bridging loan facility is often available during the bridge, meaning that there may be no monthly repayments to make.
How you will “Exit” the bridge: Open bridging lenders need realistic exit strategy on paper; it does not usually need to be proved up to 70% of the valuation*.
* Closed bridging available to 100% of the purchase price, up to 85% of the value is available with a confirmed term lender same day re-mortgage exit.
Please contact us today to discuss bridging finance.