Bridging Loan Calculator
The types 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. This is still the case but they can also now be used for many other reasons including 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 enabling you to take out enough equity for your required needs.
Bridging finance can be used for purchase or refinance on a property or land but only for a short period of time, usually up to 12 months. Short term finance can be obtained for the use of debt consolidation, business purposes such as expansion or for the auction purchase of residential and commercial property.
In general, our bridging finance and short term loans start from approx £10,000. 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 or hours.
Rates available in the market are again dependant on the type of property and size of loan compared with the security available or whether it is on a first or second charge basis. Rates presently start at 0.58% and this is the rate most used by us.
Please contact one of our advisors to 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.