Bridging finance is one of the most efficient forms of lending and offers practical solutions for both small and large businesses.
Bridging Finance
Bridging Finance is a fast, short term loan taken out to facilitate a specific transaction. It’s best thought of as a temporary loan which gets you from A to B, until you can either clear the loan in full or secure a more permanent form of finance. That’s where the “bridge” idea comes in, finance to get you from one stage to another.
The loan is secured against a residential or a commercial property or land, by way of a 1st or 2nd charge taken against a new or already owned property or even a combination of both.
Bridging Finance is much quicker to arrange than a traditional mortgage. In some cases, this can happen within 24 to 48 hours, although a normal transaction usually takes around 7-10 working days from first enquiry to completion.
Why would you need Bridging Finance?
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To purchase a property before you have sold your existing home
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To purchase a property at auction
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To be able to negotiate discounts for quick completion on investment properties
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Entrepreneurs who need money quickly in order to fund a new opportunity
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Property developers seeking to buy, develop and sell a property or properties quickly
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Un-mortgageable properties e.g. no bathroom or kitchen​
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From £50,000 to £10,000,000
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Loan to Value: up to 75% for1st charge and up to 65% for 2nd charges
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100% finance with additional security
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Term of loan usually from 1 month to 12 months, although in some circumstances this can be stretched to 18 months
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Staged facilities including interest only charged on monies drawn and Retained interest