Bridging Loans For House Purchase
Our Bridging Loan Service
Special features of what we offer include:
- Bridging loans from - £50,000 to £25 million
- Terms of finance from 1 to 36 months
- Interest roll-up schemes
- Bridging loans for individuals, limited companies, sole traders and partnerships
- Whole of market service - we work directly with UK bridging lenders
- Lowest rates - Access to leading bridging loan deals
- Fast turnaround - speak to us today if you need to move quickly. 5 to 7 days possible.
To investigate your bridging loan options, call our team on 0117 313 6058 or fill in our call back form.
We can provide bridging loan options and then provide mortgage solutions once the bridging loan is no longer required.
Bridging loans for house purchase
A bridging loan is a short-term finance option designed to be used where there is a gap between a borrower being required to put money down and them receiving the capital intended to be used for that purchase.
When bridging loans can be used for house purchase
Bridging loans for house purchase can be used in a number of scenarios - for instance;
- where a borrower is required to complete the purchase of their new home when their current property is still on the market.
- Or instances where a buyer has found a property at auction and needs to pay the seller before a mortgage application could be processed and approved.
There are some properties that many lenders would find ‘un-mortgageable’. If they are not considered habitable in their current state, then they will be deemed unmortgageable. An example of an unmortgageable property is one without basic kitchen facilities or an internal bathroom.
In these instances, a borrower might use a bridging loan to cover the initial house purchase and renovation costs then secure a mortgage on it and use that capital to repay the bridging loan.
Types of bridging loan
As with a mortgage or any other type of loan, the interest rate that accumulates on a bridging loan may be fixed or variable.
Having a fixed rate means that the interest rate will be consistent over the course of the loan, so if you opt for a monthly payment plan each payment will be the same. Variable bridging loans' interest could fluctuate up or down.
Closed bridging loans – A closed bridging loan is a finance option with a fixed repayment date from the outset. Bridging loans for house purchase in this instance could be used where a borrower has exchanged contracts but is waiting for the sale to complete.
Open bridging loans – With an open bridging loan there is no fixed date of repayment. However, as they are intended to be short-term finance options the repayment in many cases must still be made within a year.
As with a mortgage or homeowner loans bridging loans you need to put up property or land as security on a bridging loan.
Bridging loans do present a fast and flexible way to secure short-term finance; however, they can prove expensive due to high interest rates and arrangement fees. Speak to us for a free initial consultation.
Talk to us today on 0117 313 6058 to discuss your options.