What are the advantages of bridging loans?
Bridging loans can be arranged in as little as 24 hours, but they normally take 5 to 14 days in order to obtain the best possible bridging finance deal.
Bridging finance is ideal for short term use and many loans can be set up so that there are no any early repayment charges or penalties.
In order to raise the amount of finance required a single bridging loan can be secured on more than one property.
Since more than one property can be used as security it is possible to raise 100 per cent of the purchase price by using the additional property to make up the equity gap.
Bridging loans are very flexible and each facility can be tailored to best suit your own requirements and what is best for you.
When setting up a bridging loan there are often various options regarding monthly interest charges and repayments. Interest payments can be made monthly, but other options including interest roll up are often available for bridging finance facilities.
Some bridging finance providers have a flexible approach to a poor credit history such as County Court Judgements, repayment arrears and defaults. Bridging loans can therefore sometimes be the only finance option.
Finally, bridging loans enable a way of raising finance where other types of funding maybe unobtainable. Properties in a poor state of repair and in need of renovation can be used as security for a bridging loan. This is of a particular advantage because for these types of property more traditional mortgage and commercial mortgage providers often place difficult conditions and retentions on their facilities, or quite often may just refuse to lend. Consequently for some types of property, including property of unusual construction, a bridging loan maybe the only finance option.