Some bridging finance exit routes
When taking out any bridging loan it is important to have an exit route in place. Bridging loans are normally only required for periods of up to 6 months, and in some circumstances up to 12 months, so are not intended as long term finance options.
Because development finance is normally used to fund new residential and commercial developments, when considering the time it can take to complete a development and sell all or most of the new properties, development finance is often taken out for periods over 1 year. For many large projects development finance can be arranged for periods as long as 3 years.
When it comes to repaying bridging loans or development finance facilities, this is often achieved through the sale of property. Alternatively this can be achieved by refinancing property or other assets. The experienced staff at KIS Finance can help find and arrange the best deals on many finance options.
Residential property that is to be kept as an investment and rented out to produce an income can be refinanced through a buy to let mortgage facility. As completely independent brokers KIS Finance will search all buy to let mortgage providers to ensure that they provide all of their customers with the best possible deal. Buy to let mortgages are available both for purchasing investment property and for remortgaging existing investment property to receive a better deal, release capital or repay bridging finance. KIS Finance can provide a rapid service for buy to let mortgages, and in many circumstances are able to arrange them so quickly the need for a bridging loan is bypassed. These fast buy to let mortgages are very useful when buying a bargain investment property or when buying a property at auction. Being able to arrange and use a buy to let mortgage quickly, thus eliminating the requirement for a bridging loan, obviously saves their customers time and effort in addition to the costs associated with bridging finance facilities.
Alternatively commercial mortgages can be used to refinance investment property in order to clear development finance and bridging loans. Commercial mortgages can be secured on retail shops, industrial and retail units, office developments and also residential property that is being rented to tenants. Whatever their customer’s requirements, the experts at KIS Finance always ensure they find the best possible deals on commercial mortgage facilities.