Bridging Loan for Property Development
Bridging loans are often used by property developers when they need short term finance to facilitate a new development opportunity. This type of borrowing can usually be accessed within as little as a few days and allow developers to repay over up to 18 months or even longer in some cases.
Why use a bridging loan for property development?
Bridging loans offer a fast way for developers to raise large sums when they need to move forward quickly with a property development or where other forms of funding are not available. There a number of different types of property development deal where a bridging loan can be appropriate.
Some of the most common include:
- Buying property or development sites at auction
- Buying unmortgageable property to renovate
- Securing development opportunities when cash is tied up in existing projects
How much does a bridging loan for property development cost?
Bridging finance can be more expensive that some other common types of borrowing, such as a mortgage. This means it is especially important to understand the costs and how to find the best possible deal.
Common costs associated with bridging loans for property development include:
- Arrangement fees (charged when you first take the loan)
- Exit fees (charged by some lenders when you repay the loan)
- Interest (normally charged monthly or as a lump sum when you repay the loan)
Find the best deal on a bridging loan for property development
Securing cost-effective borrowing can make a big difference to the profit margins on any property project. When searching for a bridging loan for property development, it is therefore vital to find the best possible deal on your fees and interest rate.
Our free bridging loan calculator makes this easy, by allowing you to quickly find the best deals on bridging finance from all the top lenders, so you can find the money you need at an affordable rate.
Looking for a bridging loan for property development? Please get in touch with our friendly expert team of loan brokers using the contact form on the right or by calling 0117 313 6058.