Bridging Loans Explained
Bridging loans are generally secured on a property or other assets of high value - meaning that the value of your asset is used to guarantee your loan. Payments are interest only, so your monthly repayments are lower as you are not paying back any of the bridging loan principal. As bridging loans are short-term loans, the interest rate will tend to be higher than that of, say, a mortgage, making bridging loans unsuitable for long term financing, but highly useful and profitable for when you need funds fast.100% of the purchase price can be available, assuming that we arrange a loan on both the property being purchased and the property being sold - subject to the overall loan to value not exceeding 75%* Interest can be added to the loan - loan to value permitting* No interview required * No income checksA bridging loan can give you a stronger negotiating position when buying commercial property, enabling you to buy a property without a contingency on the sale of your existing property or other assets. We can arrange a bridging loan from £25,001 - £5 million on a first or second charge basis.