If you’ve considered bridge finance as a possible means of financial support, here are just some of the ways it can help you

Bridge loans, residential or commercial, can act as an effective means of short-term finance when you need it the most. Unlike more traditional methods of financial support like a mortgage, bridge finance offers you funding quickly in order to cover a gap in your finances or provide the money you need to take advantage of a short-lived opportunity.

Residential bridging loans are usually used to help buyers break free from property chains or secure their dream home without relying on a seller. Bridging loans can also be used commercially by businesses, investors and property investors looking to undertake a significant project.

So are bridging loans right for you? Read on to discover some of the benefits to this kind of finance. Once you know all the information, you can make an informed decision about whether bridging finance would suit your requirements.

Bridging loans are fast to arrange

The most obvious benefit of a bridging loan is its speed. When finance is required, the usual way to gain access to a significant sum of funding is to apply for a business loan, or commercial mortgage, a residential mortgage or a buy to let mortgage. These options all have one thing in common: they take a long time to process. Mortgages of any kind can take months to be completed. On the other hand, bridging loans can be secured in as little as 48 hours.

They offer flexible lending criteria

The growing popularity of bridging finance means that there are an increasing number of lenders available. All of these bridge loan providers will have their own unique lending criteria which you can assess to see how well it suits your needs. Generally speaking, lenders are not so concerned with income, credit and affordability, giving you greater freedom of choice. Instead, they will want to know the value of the property being offered as security and also your intended exit route out of the loan.

All types of property can act as security

A bridging loan can be secured against practically any kind of property, be it a flat, a house, a maisonette, a shop, a mixed use property, a commercial unit, an office, a care home, a farm, a leisure complex, a building plot, land or development land. Property can be freehold or leasehold even when the leasehold only has a limited time left to run its course.

They can be beneficial with property in a poor state of repair

Generally, mortgages can only really be pursued in the purchase of property that is habitable. However, bridging loans can be used to purchase property or land in any state. So if you see potential, you can obtain it. Bridging loans can also be secured against property in poor condition, such as derelict buildings or those in need of restoration.

They can help with non-standard property construction

Many mortgage providers will only agree to lend against property which has been classed as standard construction. On the other hand, bridging loans can be secured against property of non-standard or unusual construction. This gives you greater flexibility and freedom when arranging the terms of your loan with your lender.

Multiple properties can act as security

Multiple properties can be used in order to secure a single bridging loan, and this can be on both a first charge or second charge basis, or even a combination of both. Again, this gives you the freedom to arrange a situation that best suits you.

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