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| BRIDGING LOANS |
Bridging loans, fast bridging finance and
bridging mortgages for most purposes. Our brokers
know the importance of a swift response when it comes to arranging
commercial bridging loans.
A bridging loan is a loan which is taken out to cover a temporary cash shortage. One of the most common uses of a bridging loan is when you need to buy a new house or commercial building, but have not yet been able to sell your existing property.
Bridging loans can be used to, literally, bridge the gap by providing short-term funding to allow you to buy the second property whilst waiting to sell the first one.
In this way, bridging loans can be help stop an entire chain collapsing if one buyer or seller pulls out.
Bridging loans are much quicker to arrange than mortgages or other forms of longer term funding. Bridging loans can therefore be used to save the day if a property purchase is in danger of falling apart due to lack of funds in the short-term.
Bridging loans tend to provide plenty of flexibility and can be arranged fast, because the lending criteria are not based on the idea of the borrower repaying the loan over 25 years like with a typical mortgage. Lenders who offer bridging loans usually look more at the type and quality of the property being used as security, rather than at the borrower's income and ability to afford repayments.
Because they are so quick to arrange, bridging loans can be used for various situations where speed is of the essence and where a
traditional mortgage may be too slow or too inflexible for your requirements. For example:
- To enable the purchase of one property before the sale of another. This is very useful if you need to avoid a property chain collapsing.
- Temporary funding for the purchase of a defective property which would not qualify for a traditional
mortgage due to its poor state of repair. Once the property has been renovated and repaired, you can then look to take out a normal mortgage to clear the bridging finance.
- To allow a business to raise money on their premises. In this way, bridging loans can be used to overcome a short-term cash flow problem.
- To fund the purchase of an overseas property.
- To fund the urgent purchase of a property, pending arrangement of a long term mortgage. This can be useful, for example, if you are buying a property at auction.
Bridging loans usually run for a maximum of six months and are typically available for up to 75% of the value of the property being used as security. Therefore, apart from credit checks, there is very little to be done before the bridging loan is approved - no surveys, no conveyancing, etc.
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We are licensed under the Consumer Credit Act 1974 to carry on the business of consumer credit, consumer brokerage,
debt adjusting and debt counselling, credit reference agency and canvassing off trade premises. Our Consumer Credit Licence Number is 587232.
Enquiries generated via this website are passed on to Financial Advisers, Mortgage Brokers, Licensed Credit Brokers and Lenders.
Divadani Finance and Divadani Loans are trading styles of Divadani Limited.
Company registration number 5256587. VAT registration number 877 4798 45.
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