What is a Bridging Loan?
A bridging loan provides a short-term funding option that 'bridges’ the gap between an outgoing payment and money coming in. They help people complete the purchase of a property that would otherwise not be possible, for instance if there is a break in the property sale chain, or when there is a high market demand and properties are selling quickly. They can be organised quickly, in the matter of weeks in some cases, so they offer a viable solution for raising funds quickly.
What can a Bridging Loan be used for?
Sometimes there are reasons why purchasers may need to buy their new property before the sale of their existing property has gone through. In order to do this bridging finance could be used to ‘bridge’ the short-term shortfall in their finances. Bridging loans can also be used as a short-term loan, for relatively large amounts of money, for a range of other circumstances.
For landlords and property developers, bridging loans can be utilised when buying a commercial or residential property at auction. Due to the property needing to be paid in full within a short space of time, the loan allows them to complete the purchase whilst the mortgage is being arranged.
For ‘unmortgageable’ properties, bridging loans can also be used to make them habitable, and worthy of a mortgage. Other reasons include:
- Business investments
- Property renovations
- Purchasing at auction
- Purchase of land and materials to build a property
- Purchasing a retirement property
- Payment of tax bills
How do I get a Bridging Loan in Brighton?
It can be a tricky process finding a suitable bridging loan for your needs. There are multiple bridging lenders out there, each one coming in a different shape and size. Due to the vast amount of options, it is advisable to use an FCA-regulated broker, to help find you the most competitive deal for your circumstances.
Contact Transparent Mortgage Services to discuss your needs and we will find the best deal for you, or advise you on alternative finance sources that might represent a more affordable option.