The scope of bridging finance products available in the market has increased in recent years along with an increase in the circumstances in which this type of short term finance can be used. Traditionally, bridging loans were used to bridge the gap between a purchase of a property before the sale of an existing property but they can now be used to raise capital before sale for reasons such as refurbishment. This enables the borrower to remain in control of the property and in most refurbishment situations, improve the property before sale and therefore market the property for a higher price due to the standard of works completed.
Bridging finance is available for many different circumstances; the amount you can borrow depends on the security on offer. You can combine more than one security to enable you to obtain a larger loan amount, for example if you have a property portfolio where the equity is spread over numerous properties, you may be able to secure on a range of the properties you own enabling you to take out enough equity for your desired needs.
Bridging finance has many uses such as for purchase, refinance or capital raising on a property for a short period of time. Short term finance can be obtained for the use of debt consolidation, business purposes such as expansion or for purchase of auction property or residential and commercial property.
In general bridging finance and short term loans start from approx £10,000 and beyond £5 million in funds. Short term finance can be offered on a range of properties whether investment, commercial or residential or even a combination of property types.
Lenders often have minimum terms of 1 month but some bridging finance loans can be used for as little as one day enabling you to complete the simultaneous purchase and sale of properties over a period of a few days.
Rates available on the market are again dependant on the type of property and size of loan, whether this is on a first or second charge basis or the loan to value (size of loan compared with the value of the property) of the security property being offered. Rates start at 0.59% and may be less if the loan to value or loan size is minimal.
So why not contact one of our advisors today and see what possibilities are available to you. Our bridging loan calculator can be a useful tool enabling you to estimate if bridging finance could be a viable option for you. Contact us for a specialised quotation today.