Bridging Loans for Refurbishment
Bridging loans are often used for refurbishment projects as they offer a quick, flexible way to borrow money against property when other types of funding is not an option.
A bridging loan for refurbishment purposes can give you the money both to buy an investment, or buy to let property, and carry out all the necessary work to bring it up to a liveable standard.
Bridging loans are usually offered over up to 18 months, although longer loan terms may be achievable depending on the lender and borrower. Funds can often be accessed within as little as a few days of an application.
Reasons to use bridging loans for refurbishment projects
There are various reasons to use a bridging loan for a property refurbishment.
Common reasons include:
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The property is unmortgageable (often due to the lack of a working bathroom or kitchen)
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To use as auction finance (because a mortgage cannot be secured fast enough to meet the 28 day limit for completing a purchase after the auction date)
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To secure a refurbishment opportunity while your funds are tied up elsewhere
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To get a project moving forwards when other sources of funding have stalled
The cost of bridging loans for refurbishment
Refurbishing property can be a good investment, but it is important to carefully consider the cost of your financing to make sure you see the best return on investment.
With a bridging loan you will usually pay:
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An arrangement fee (generally 1-2% of the total capital, paid when the loan is taken out)
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An exit fee (also normally 1-2% of the capital, paid when the loan is repaid – however, not all lenders charge exit fees)
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Monthly interest (you may have the option to roll-up your interest and pay it as a lump sum when the loan is repaid)
Compare bridging loans for refurbishment projects
Our free bridging loan calculator makes it fast and easy to find the lowest fees and interest rates on bridging loans for refurbishment projects. All you need to do is share some basic information about your borrowing needs and finances and we will do the rest.
Looking for bridging loans for refurbishment projects? Get in touch with our friendly expert team of loan brokers using the contact form on the right or by calling 0117 313 6058.