A bridging loan is a form of short term finance, often used to cover a temporary shortfall. The benefits of this loan type are manifold. Apart from being flexible to suit the needs of the borrower, they can also be arranged in a very short space of time. Bridging finance is simply the name for short term loans. For more information on all types of bridging finance please visit our dedicated Ascot Bridging Finance website.
Bridging finance is probably the most under used form of financing available when assessing property loans. A bridging loan can provide fast access to funding with the minimum of formalities and can be used for a range of purposes including investment, commercial property financing, purchasing dilapidated properties for full renovation.
What is bridging finance for?
Individuals looking to raise capital on their own homes or indeed any other acceptable investment property or commercial property for financing. This may be property financing they require on either property that they already own or are purchasing. Property loans in the form of bridging finance generally tend to be assessed on the property being used for the property finance requested i.e. the size of the loan to the value of the property.
Bridging loans are secured against property therefore they are sometimes known as simply property loans. The property financing will be subject to a 1st or 2nd charge against your new or existing property. You may be able to borrow 100% of the purchase price of a property, if additional investment property financing is available to increase the amount of security available.
Some of the most common uses of bridging finance are as follows:
If you are looking to acquire a new business but are unable to show evidence of prior industry experience or account information then a bridging loan may be your best bet. It is also an effective means of financing commercial property investment, especially where there is competition for a certain premises. And the bridging money that you are lent can even be put to use in the purchase of valuable stocks and shares.
Desirable overseas properties are often snapped up in double quick time. If you are unable to quickly find the required cash then you are likely to be left disappointed. So rather than waiting to sell your current abode or apply for a bank loan you are advised to use bridging finance. By taking this option you will be able to secure the funds and begin planning for glorious days of sunshine in a matter of weeks.
A bridging loan is a sound solution for anybody seeking a rapid injection of money with which to buy land. It will enable the buyer to take advantage of any deals which may become unavailable in the time that it takes to apply for a mortgage or bank loan. Once the land has been developed it may be possible to sell it off, allowing for the repayment of loans and any building costs incurred.
Bridging loans are seen as a real blessing in today’s business world, where cash flow problems are becoming increasingly common. They provide a temporary boost to a company’s finances, while client payments are being processed and deals are being finalised. It is far more straightforward to obtain a bridging loan from a company such as Ascot Bridging Finance than to navigate the red tape set out by the typical high street bank.
People who have fallen behind on their mortgage repayments may be faced with the prospect of property repossession unless they can quickly find some funds. In such instances a bridging loan can be used to either completely clear the outstanding debts, or appease the financier until the property is sold on the open market.