Do You Need a Bridging Loan?
Here at The Money Hub Ltd, we are proud to offer a fast and premier service that provides you with the provision of bridging loans. These can be used for either commercial or residential properties. We know all too well just how important speed is when it comes to offering bridging finance. Thanks to our large panel of expert lenders, we can provide you with your bridging loan in just a few days. There are many areas across the country where the bridging loan market has rapidly grown. Especially across London.
There are a number of reasons why clients take out bridging loans from us. Here are a few:
- Maybe a property sale has been delayed or fallen through. The client could need some more cash to complete the purchase.
- For buying property at auctions.
- Various business needs and funds.
- To solve cash flow problems.
Bridging loans are a great way to get some money for the short term. Usually, this type of financing is used for property. In the UK, it can be secured on both residential and commercial property as well as plots of land. You can choose between Closed and Open bridging finance. If you want fixed repayment dates and a fixed repayment method, you should opt for a Closed bridging loan. When it comes to Open bridging loans, there is no confirmed repayment method or date.
There are many reasons why a client might use bridging finance. Here are a few examples:
- After purchasing a property at auction, a client is required to raise 75% of the final purchase price in just a limited amount of time.
- The bridging loan is being used by a client to quickly purchase a property, do it up and sell it. All within 3-6 months.
- The bridging loan can be used by a client to buy a property that is not mortgageable. The loan will also provide cash for the development of the property.
- A client can use the bridging loan to help them release equity from the various other properties that they own.
Bridging Loan Case Study 1
Planning to retire in France, Mrs. X was selling her UK property. However, the buyers of the UK property dropped out of the sale right at the last minute. But Mrs. X had to meet her deadline to complete the purchase of her French property. She had to meet a shortfall of £81,000 to buy the property in France. Therefore, she made the decision to use a bridging loan against her UK property for the £81,000. That way, she was able to purchase the property in France. After going back on the market, the sale of the UK property helped to pay off the bridging loan.
Bridging Loan Case Study 2
Mr. P currently lives and works in Australia, but he also has a property in England. He has decided to take out a loan for £72,000 so that he can refurbish the property in the UK and sell it. All within 3 months. A bridging loan for £72,000 is secured against his property in the UK. The sale of this property will help to pay off the bridging loan.
Frequently Asked Questions
So what exactly is a bridging loan?
These types of loans are secured on residential, commercial or land. They are very quick to arrange when action is needed for the funds right now. For example, if you need funds to buy a property at auction or want to stop a property being repossessed. They can also be used if you require working capital.
What can the bridging loan be used for?
There are many different uses. Development Projects, Creditor Settlements, Purchase of Properties, Renovation of Property, Land Acquisitions, Divorce Settlements. Inheritance Tax, Save Repossessions, Paying off Bankruptcy, IVA's and Paying off HMRC.
What circumstances are considered?
Many different ones including the following. Bad Credit history, Bankruptcy Petitions, Insolvency. Sole Traders, Self Employed, Limited Companies, Partnerships, Full Status and Non-Status.
How long are you have to have a bridging loan for?
It is short-term finance so it can last for between 1 and 12 months.
Can you take out a bridging loan quickly?
Yes, it usually only takes 5-7 days to complete a bridging loan.
How much can my bridging loan be worth?
They can be arranged for anywhere between £30,000 and £25 million. The value of your loan will depend on your security you can place against the loan and your personal circumstances.