Category Bridging Loan

What is a Bridge Loan in Real Estate?

What is a Bridge Loan in Real Estate? Bridging Loan is a short term finance that enables businesses and investors to take advantage of opportunities which require transactions to be completed quickly. The focus on this type of finance is speed. It’s about closing the deal as quickly as required. Bridging loans give you a stronger negotiating position when buying property, enabling you to buy without a contingency on the sale of your existing property or other assets.

Read More

Bridging loan finance guide

Read our bridging loan finance guide to learn about getting a bridging loan. When used correctly, bridging loans can be a cost effective method of obtaining funds against property quickly. Clearly, the circumstances of the Loan and the status of the business will effect the willingness of lenders to participate. How much can you borrow, and at what cost? Potentially though a business could anticipate realising up to 100% of purchase price, alternatively between 75% and 80% of property value. Each lender will take a differing view of risk and therefore comparing bridging loan costs is reasonable. Clearly though, time may be a factor, inviting loans from multiple lenders and following their administration, valuation survey and information needs may not be an option...

Read More

How to get a bridging loan?

If you ask yourself – how to get a bridging loan – here’s the answer to all your indecisions. Bridging loans are frequently used to purchase auction properties, or to help fund new property purchases if minor delays are incurred. Companies and individuals can achieve up to 100% of their desired commercial loan, but the costs can be prohibitive. If you decide to take out a bridging loan facility be sure to check both the interest rate and the lender arrangement fees as these can be quite significant.

Commercial bridging loans are short term loans where either a first or second charge against a property is used as security for the money...

Read More