Bridging loans are short term finance facilities, typically ranging from 1 month up to 1 year, that are secured against the value of property.
Bridging the gap to your opportunities
Bridging loans are short term finance facilities, typically ranging from 1 month up to 1 year, that are secured against the value of the property. The property used as security can be houses, flats, bungalows, shops, industrial units, care homes, fitness centres, farmland, land with or without planning permission.
The bridge finance is used to “bridge the gap” in your finances until either a long-term financing solution can be out in place or alternative funds are received from another source such as a sale of a property.
What can a Bridging Loan be used for?
A bridging loan can be used for some of the following but not limited to:
- To purchase a property or refinance quickly
- To purchase a property at auction
- To purchase a property that is potentially un-mortgageable
- To purchase a property before your current property has sold in order to not break the chain
- To fund a property refurbishment
- And many more!
Can you use a bridging loan for property refurbishment?
Bridging loans are often used for renovations and refurbishments as in most cases you’re able to get the funds quickly which allows you to start the work immediately.
What’s the difference between first and second charge bridging loans?
If the property you’re securing the loan against does not have any loans secured against it, you’ll get a first charge bridging loan. Conversely, if you already have a loan against the property as its mortgage is outstanding, a second charge loan will apply.