Bridging Finance
A bridging loan is a short-term loan used until an individual or company refinances to a longer-term loan or by selling the property to repay the loan.
A bridging loan is a short-term loan used until an individual or company refinances to a longer-term loan or by selling the property to repay the loan.
A bridging loan is a short-term loan used until an individual or company refinances to a longer-term loan or by selling the property to repay the loan.
Bridging loans are typically between 1-18 months, with the loan repayable in full at the end of the term. Unlike other forms of borrowing the monthly interest is often rolled into the loan, meaning there are no repayments to make during the term of the loan however some lenders do allow you to service the loan on a monthly basis but this is based on affordability.
Bridging loans are undoubtedly a very useful option when looking to raise finance, but they are more expensive than longer-term finance and as such, it’s important to carefully consider your options before proceeding and specialist advice is always recommended.
The bridging market is very competitive, and this is leading to a reduction in interest rates. With rates starting from as little as 0.49% per month, bridging finance has never been cheaper.
The rate is dependent on the proposition and the Loan to Value.
The bridging loan lending process can be swift and efficient. A typical bridging loan application will play out as follows:
Bridging finance can be offered against almost any type of property or land and can be used for a number of different reasons such as :
Bridging loans can be sourced and released within hours however typically applications take between 2-4 weeks to complete from start to finish.
This is a fee charged by the lender in providing the facility and is typically between 1 and 2%, in most instances, this can be added to the loan facility.
Bridge loans typically have a faster application, approval, and funding process than traditional loans. However, in exchange for convenience, these loans tend to have relatively short terms, high-interest rates, and large origination fees. Generally, borrowers accept these terms because they require fast, convenient access to funds. They are willing to pay high-interest rates because they know the loan is short-term and plan to pay it off with low-interest, long-term financing quickly. Additionally, most bridge loans do not have repayment penalties.
Some of these products and services are not regulated by the Financial Conduct Authority.
The service promoted here is not part of The Openwork Partnership offering.
The Openwork Partnership Limited accept no responsibility for this aspect of our business.