Why Choose Short Term Bridging Loans?

by Olivia Latham

Short Term Bridging Loans

When time is of the essence, and you need to act quick, a short term bridging loan is just the solution you are looking for.

We specialise in securing the best available funding for our clients’ individual circumstances. So, if you find yourself in a position where you are ready to buy your dream home but haven’t yet secured a sale for your current property, then using a bridging loan for your house purchase could be the best way forward.

Our short term bridging loans are not only used for property purchases but can be utilised for a variety of purposes. Investors looking at opportunities that require quick funding can take advantage of the fact that bridging finance can commonly be arranged within days.

What are the Pros of Bridging Finance:

  • Bridging finance can be secured against virtually any site such as land, residential property or commercial property.
  • Application acceptance time is very quick, meaning funds can be raised fast, often within 48 hours, as opposed to the average mortgage completion of 90 days.
  • Bridging finance is flexible with every deal specifically tailored to meet each buyer’s individual circumstances.
  • Bridging loan finance often does not require proof of income.

What Can Short Term Bridging be Used For?

People typically apply for a bridging loan for house purchases, but this type of short-term finance can also be used for other purposes:

  • Auction property purchases where speed is essential for raising funds.
  • Development exit for property developers and investors.
  • Funds required for legal purposes.
  • Large or small refurbishment/renovation projects.
  • Buying a property that doesn’t qualify for a mortgage.

Why Choose UK Property Finance?

UK Property Finance guarantee the best all-of-market service available. We offer:

  • Fast turnaround times on loan applications
  • We guarantee to beat any quote
  • No upfront fees
  • No obligation consultation
  • We work with all of market so can offer market leading rates
  • 5* Trust Pilot reviews
  • We are FCA regulated
  • Open 7 days a week

FAQ’s:

A bridging loan is a short term loan intended to raise funds in a short period of time with the intention of being repaid quickly, usually within 12 months. The loan is secured against property which means that if the borrower does not meet the repayments, they risk having that property repossessed to cover the loan balance. The size of the loan will be determined by the value of the security being offered. The lender will want to see an exit strategy, with a fixed repayment date, before approving any bridging finance.
Bridging loans can be either ‘closed’ or ‘open’. A closed bridging loan is bridging finance that has a clear exit strategy from the start. This is often used when a client has a buyer for their property and so can offer a fixed date for repayment. An ‘open’ bridging loan is a more flexible arrangement, in that the client may not yet have a buyer for their current property and so need a more time, therefore an exit strategy is not written in stone. To minimise costs, it is important to repay at the earliest possible time.
Anyone! Individuals and limited companies are welcome to apply for short-term bridging finance.

Bridging loans are used mostly for home purchases by individuals or developers:

  • For completion of a quick sale. This is vital for developers looking to get a great deal on land or property.
  • Homes bought at auction where completion must take place typically within 28 days.
  • Broken property chains. Bridging finance allows sellers to buy their new home before their current home sells.
  • Purchasing a property that is uninhabitable and therefore can’t be mortgaged.
How much you qualify to borrow will totally depend on the security you have to offer. As a rule of thumb bridging loans usually come with an LTV of 75% of the gross loan amount.
Failure to meet the agreed deadline can result in action being taken against you, additional fees and costs added to your loan, or in the worst case scenario, your property can be re-possessed. There may be an option to extend with the existing lender or apply for re-bridging with a new lender, however both options will come with additional costs.
Residential and commercial property as well as development plots and land can be used to secure a bridging loan.
Due to the nature of the product, bridging finance can be approved in as little as 48 hours.
Category: Bridging Loans