Property Bridging Finance
Property bridging finance is a type of short term finance used to buy property when other types of borrowing, such as a mortgage, are not available.
Also known as bridging loans, this type of finance is secured against a property, like a mortgage, but can generally be accessed much faster and can often be used with properties that would be considered unmortgageable.
It can take as little as a few days to arrange property bridging finance and with loan terms of up to 18 months (or more, in some circumstances), a bridging loan can be the perfect solution when speed is of the essence.
Reasons to use property bridging finance
Bridging finance is normally used when a buyer needs to raise money faster than can be achieved with a standard mortgage or where the property is deemed unmortgageable.
Typical uses include:
- Property auction finance (where there is usually a 28 day deadline to complete a purchase)
- Buying a renovation project (which is currently considered unmortgageable)
- Securing a new home before you have sold your current one
- Downsizing (allowing you more time to sell your own property and have a stress-free move)
Property bridging finance can also be used for a number of other reasons, so make sure to speak to an experienced broker to see if you are likely to qualify.
How much does property bridging finance cost?
There are three main costs with property bridging loans:
- Arrangement fees (typically 1-2% of the capital)
- Interest (normally charged monthly or rolled up and paid when the loan term ends)
- Exit fees (not charged by all lenders, but also usually 1-2% of the capital where they apply)
Fees and interest rates on bridging finance varies considerably between lenders, so make sure you shop around to find yourself the best possible deal.
Compare property bridging finance
Find the best deals on property bridging finance using our free bridging loan calculator. The calculator lets you see the which bridging finance providers are offering the lowest interest rates and fees on the money you need, making it quick and simple to get a great deal.
Looking for property bridging finance? Get in touch with our friendly expert team of loan brokers using the contact form on the right or by calling 0117 313 6058.