How to Get a Bridging Loan for a London Property

bridging loan london

With monthly interest rates hovering at an all-time low, there has never been a more cost-effective time to consider bridging finance.

Particularly where the funds are required quickly and for a major purchase or investment, bridging loans offer an invaluable lifeline for both private borrowers and commercial customers.

Getting a bridging loan as a homeowner

Accessing bridging finance as a homeowner is relatively straightforward and can be used for a wide variety of projects or purposes.

For example, one of the most common applications for bridging finance as a homeowner is to renovate a property before listing it for sale to achieve the maximum market value. Another use for bridging finance would be to prevent a chain break, enabling dream houses to be purchased before the sale of a current property has been finalised.

Bridging loans are also commonly used in the same way for downsizing. Buy a property at a competitive price with a bridging loan, repay the funds with the sales proceeds of your former home, and retain the remaining proceeds from the sale.

It is even possible to use bridging finance to upgrade or extend your current home before subsequently paying off the loan with a longer-term financial product (like a secured loan or mortgage) to repay the balance over several years or by sale once the work is complete.

Provided you have sufficient equity in the security being offered, you should be accepted for bridging finance. Even if your credit report is imperfect, this will not necessarily prevent you from accessing a competitive bridging loan.

Getting a bridging loan as an investor

Bridging finance is increasing in popularity as a popular purchase tool for investors. As conventional mortgage products and high-street loans become increasingly difficult to access, the flexibility of bridging finance gains further appeal.

Investors looking to purchase properties in London often have limited time to make decisions and access the funds needed. Particularly when it comes to last-minute property purchases like those at auction, waiting weeks or months for a mortgage to be formalised simply is not an option.

In this scenario, bridging finance can help, as it can be secured against any viable property the investor owns, and the finance can be arranged within a matter of days. Whether looking to ‘flip’ a property purchased in poor condition for a profit once renovated or to purchase and resell an auction property of any kind, bridging finance holds the key to fast and affordable investments in London.

Key criteria…

In both instances, the main requirement that must be fulfilled is ownership of acceptable property. A bridging loan can be secured against almost any type of residential or commercial property, often irrespective of type, purpose, and even condition.

Ensuring you get the best possible deal means shopping around with the help of an experienced broker, who compares the market in its entirety on your behalf. Always remember that many specialist lenders work exclusively via established brokers, meaning their products and services are not available directly to the public.

For more information on any of the above or to discuss your requirements in more detail, book your obligation-free consultation with UK Property Finance today.