BRIDGING LOANS
Bridging. Often thought of as a “naughty word” in property investment circles, is in fact, far from it!
Finance in days
Complex Purchases
Auctions
Flexible Terms
Understanding bridging finance will unlock a multitude of different strategies and investment options, from buying at auction, to exchange with delayed completion, and even purchase lease options.
Bridging finance is an important tool in any property investors arsenal, as not only can you use it to purchase properties quickly (sometimes in a matter of days), but also acquire properties that perhaps, are not fit for a mortgage yet.
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Bridging loans are typically arranged over a shorter period of time than a mortgage, and as most lender prefer to deduct the interest at source, they can be arranged with no monthly payments to be made, which is great for cash flow during a renovation project, if, for example, you are following the buy, refurbish, refinance strategy.
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Usually, the term is between 6 and 18 months, with most clients here at Grand Union Finance paying back the bridge well before the end of the term, either through the sale of the property as a flip, or through a remortgage onto a buy-to-let, HMO, SA or social housing mortgage.
Process Steps for Finance Application:
