What is a Bridging Loan?

 

Bridging Loans are normally taken out when you have a short term requirement or you need to find money very quickly. Bridging loans are normally repaid within 12 months as the rate of interest makes it too expensive to borrow for much longer.

However developers & investors have been using bridging loans for years to take advantage of market conditions or under valued assets. Being able to purchase a property quickly offers many advantages such as negotiating the best price and beating others to the deal.

One of the most common uses of Bridging Loans is when investors wish to purchase a property at auction. You normally have 4 weeks to complete on the purchase from the day of the auction. You will have to put down a 10% deposit that could be lost if you fail to get the funding in place so it is of paramount importance you go with the right lender.

These services will be referred to a 3rd party