Bridging Loans – A Flexible Property Finance Option
Bridging Finance or Bridging Loans London UK – is a method of funding that helps to fill the temporary financial gaps or shortage of capital often experienced by property investors and developers. They are usually short term loans with a duration of 1 day to 6 months. This specialist type of finance plays a vital role in commercial property sector, and allows the savvy property investor to take advantage of short-term opportunities that otherwise would not be available. In addition, bridging loans London UK or bridging finance can also be used for the following:
- Raise funds in a few days (48 hours is achievable).
- Buy a property under value or at auction.
- Buy a property and benefit from planning enhancement or refurbishment works.
- To borrow on a second or even third charge on a property.
- When there is no accounts or proof of income.
- Pay off arrears.
- Take out a defaulting bridging loan.
Since bridging finance loans are non status loans, they can involve a higher risk level for the lender; therefore, the interest rate on bridge loans is usually higher. Sometimes the lender may ask for cross-collateralization and a lower loan-to-value ratio to cover the risk factor. However, bridging loans are fairly straightforward to obtain and require comparatively little documentation and other formalities compared to the regular mortgage companies.
A successful Property Bridging Finance application is not contingent upon the credit worthiness of the borrower, thereby allowing people and businesses with adverse credit records, arrears, defaults, CCJs (County Court Judgments) or IVAs (Individual Voluntary Arrangements) to apply. The approval of bridging loan is very much based on the property being used as security, the experience of the borrower, and their overall net worth. However, of paramount importance is how the borrower plans to repay the loan, in other words- “the Exit” from the loan.
Bridging finance provides the necessary cash for property investors when they need to move FAST!
Bridging finance is available for almost all types of properties whether it is residential, commercial offices, pubs and hotels or land. A Bridging loan can help you to beat the competition in the fast paced property arena, thereby taking advantage of opportunities that present themselves at short notice. Quick cash and speedy approval are the reasons for its popularity. However, bridging loan finance is only recommended when you are sure that the property being used as security has a good market value and will be sold within a fairly short time frame.
About Pure Bridge:
Through an exclusive network of High Net Worth (HNW) investors, who are in position to lend their own cash – Pure Bridge sources, packages and underwrites bridging loans over £500k. Their unique funding model allows property investors to remain free from the impediment of dealing with the underwriting restrictions imposed by the mainstream banks.
Their initial advice is free, so whatever your financial requirement, they will welcome your call. The first stage is an informal and confidential discussion, entirely without obligation. Visit: www.purebridge.com or call: 0843 289 3858 (uk local rate.)
