How Bridging Loans can help you…
Meeting tight transaction deadlines
Mainstream lenders and banks often take several weeks to underwrite and complete a loan transaction. In some cases this is not quick enough so the need for bridging finance that can be completed in a matter of days is valuable.
Capital raising
Raise finance for any loan purpose against an existing property byway of a first or second charge.
Chain break finance
Property sales sometimes fall through because one member of the chain pulls out. Bridging finance can often be granted so that the customer can proceed with their purchase even when the buyer of their property has withdrawn.
Property auctions
People often buy properties at auction without having a mortgage in place. Normally completion has to take place quickly and a high street lender may not be able to complete a loan in time so the speed of a bridging lender is required.
Property refurbishments
High street lenders often won't lend on properties that need refurbishment so bridging finance can be the perfect solution. Once the works are completed the bridging finance can be repaid either by selling the property or by refinancing.
Property conversions
Converting single dwellings into flats or vice versa.
Cash flow
Funding for short term cash flow requirements.
Landlords looking to buy properties quickly
Many landlords expanding their property portfolios may not be cash rich. By securing bridging finance across multiple properties the need for cash deposits can be avoided. With this facility in place landlords will be able to move quickly when they find a suitable property.
Repossession prevention
If a property is due to be repossessed a bridging loan can be used to pay off the debt and prevent the repossession. This then enables an owner to retain control of the property so that they can sell it on their terms and avoid a forced sale situation
Inheritance tax and probate issues
Sometimes funds are required when dealing with inheritance and probate issues. There are many reasons including having to release charges on property, pay tax and other bills, and also to pay off other beneficiaries.
Solve business short term cash flow problems
Cash flow problems can arise for a number of reasons when running a business. For example a bank may call in an overdraft facility, customers may be late paying their invoices, seasonal factors or new equipment may be unexpectedly required.
Building a house
People wishing to realise a dream and build their own home.
Converting a barn (or other property)
For people wanting to live in peace and tranquillity in the countryside or for developers looking to turn a profit.
Un-mortgageable properties
Bridging loans can also be used by people fixing up dilapidated properties, where traditional mortgages would not be approved, for example, where properties have no bathrooms, toilets or kitchens. Renovation and development: The funding option can be used by those wanting to renovate a property, or those wanting to develop a piece of land into one house or even multiple houses.
HMO refurbs
The HMO and Student Let market has risen in popularity with both landlord, and lenders in recent years. The refurbishment of these properties has enabled bridging lenders to provide finance before moving to a term loan. For businesses Raising capital: Bridging loans can be secured against land and property so that companies can raise the sums of money needed in a short time frame, for example, buying stock as an alternative to asset purchase finance. Tax liabilities
Business cashflow
Businesses can use bridging loans if a tax demand is made, and the amount cannot otherwise be accessed within the required time frame.
Meet business obligations
Borrowers looking for short term funding to meet business obligations and payments