It used to be considered to be the preserve of the super-rich or of clients willing to take very high risk positions. However, in recent years, we’ve seen the market for bridging finance expand rapidly.
Bridging finance is usually an interim loan, arranged quickly to cover the gap between expenditure (such as buying a house) and the next stage of financing (such as selling). It is becoming a convenient way of making a deal work. Although the costs are still relatively high, the opportunities it can open up mean we are seeing more enquiries for bridging from people in all sorts of situations.
Traditionally bridging has always been seen as a chain-breaker in property sales. However, more and more we are seeing it used for:
- Investment purchase
- Short-term cash flow
- Home improvements
- Business use
These days there is a wide variety of bridging products available:
- Loans from £30k to £5 million
- Rates from 0.85% pm
- 1st and 2nd charges available
- Daily interest, with interest payable monthly or effectively borrowed as part of the loan
- No exit fees
- Terms from 1–23 months, with one lender even offering a 3-year bridge
Bridging finance is not for everyone, but is more versatile than it used to be. Why not call us to find out if it could help you with your next property move or development?