Bridging Loans

Bridging Loans

Sourced by Tower Bridge Commercial Solutions Ltd

A Bridging Loan is a type of property-backed short-term finance. They are great for getting funds quickly before needing to have everything in place. 

How does a Bridging Loan work?

When you take out a bridging loan, a ‘charge’ will be placed on your property. This is a legal agreement that prioritises which lenders will be repaid first should you fail to repay your loan. 

Typically you will need to cover a deposit of around 30%, but this varies depending on the circumstances of your case. If multiple charges are used you may be able to avoid using a deposit. 

What are the Terms of a Bridging Loan?

Bridging loans are priced monthly, rather than annually, because people tend to take them out for a short period. Terms are flexible and can be anywhere from 1 month upwards.

The market for bridging loans is now so competitive that the charges and interest rates have fallen, making them a flexible tool, able to work for so many clients.

1st + Charge options are available depending on how much equity the property has.

It’s important to pick the right broker as the cost and fees can vary greatly. We pride ourselves on not charging a broker fee which could potentially save you thousands of pounds.

Why would you use a Bridging Loan?

  • Cash flow injection for your business
  • Auction finance
  • Purchasing property that you can’t obtain a mortgage on
  • Light & Heavy refurbishment of a property
  • Property development
  • Development exit
  • Timing issue between sale and purchase of a property
  • Paying urgent debts
  • Buying land

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If you’re ready to start the process, feel free to contact us today. We will get back to you as soon as possible.