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
- Industrial
- Office, primary, secondary and tertiary locations
- Residential Property
- Restaurants
- Pubs
- Properties with restricted usage i.e. 11 months Holiday Let
usage only
Bridging companies assess the viability of a deal based on three
considerations:
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.
