Many people find themselves in the position of needing to fund a house purchase quickly. Whether buying at auction or having found your ideal home but not yet having sold your current property, bridging finance offers a solution. With rates having reduced significantly over the last few years, bridging loans are more affordable than ever.
Bridging Finance is a short term secured loan, we can put you in contact with our recommended partner and work alongside them to have what is known as the exit strategy for the bridging finance (this is the mortgage that might possibly need to be achieved to bring to an end the short term bridging finance).
A bridging loan is generally utilised to “bridge” the gap as an interim measure between the purchase of a new property and the approval of a traditional mortgage, the sale of the new property or the release of capital from an existing property that has subsequently been sold.
Bridging loans are used in scenarios to bridge a finance gap when funds aren’t immediately available. Here are some examples:-
- The purchase of an auction property
- The purchase of land for a self-build
- Your chain has fallen apart but don’t want to let your purchase fall through
- You want to purchase a property that isn’t currently mortgageable or habitable and/or need to convert, refurbish, or develop a property
- You require short term funding without making monthly interest payments