This may be a term that you’ve heard thrown around before but may not be fully aware of what it means. Simply put, a bridging loan is essentially a short-term loan that comes with a minimal amount of formalities.
Quite literally “bridging the gap” between finances, a bridging loan is a quick solution that can be approved quicker than normal loans, without the extensive checks. Whilst they are usually available for up to 12 months, they can be offered for longer, but this is subject to the situation. Due to the short period of time they cover, the interest payable is low, but more expensive than other more traditional forms of finances.
You may want to consider a bridging loan for any of the following scenarios:
- Quick cash in the case of buying a new property before the old one is sold
- Conversion of a property
- To provide a cash injection into a business
- To carry out essential repairs so that a property becomes eligible for mortgage lending
- Chain breaking
- Settling tax liabilities
- Below market value purchases
- Auction finance
- Probate cases
- Cover mortgage delays
- For refurbishments or re-developments
To find out how we can help you secure a bridging loan, get in touch via our website today.