Bridging Loan FAQs ....
What is a Bridging Loan? A bridging loan is a short time loan that is secured against either residential or commercial property. The equity in the property normally the cheaper the rates offered.
How does a bridging loan work? The lender will take a 1st or 2nd charge over some property in order for you to raise funds against it. You will pay a monthly interest rate until the bridging loan is repaid.
Bridging Loans Explained A simple explanation of a bridging loan would be a short term loan secured on property and typically between 1 to 6 months.
Bridging Loan Finance Types ...
Commercial Bridging Loans Bridging Loans are often used for commercial reasons. Many developers may get a property cheap or at a discount. They then use the finance secured against the properties open market value. The developer then develops the property and may sell this on and repay the loan making a profit.
Business Bridging Loans Businesses have many uses for bridging finance. Often bridging finance is used for management buyouts.
Residential Bridging Loans The typical residential bridging loan will be someone who needs to sell their existing property before buying their next one. Instead of waiting for the sale to go through they get bridging loan secured on 1 or both properties to allow the purchase to go ahead.
Bridging Loan Uses ....
Buying Property at Auction
Buying Property at Auction When buying property at auction typically you will need to complete on the purchase within 30 days. Traditional mortgages will generally take longer. Therefore with a sizeable deposit a bridging loan could be used instead and then remortgaged in the future on to a buy to let or residential mortgage.
Moving Home
Moving Home If you find you perfect house then often to buy it you will need to sell your existing home to provide enough funds to purchase the next one. However if the house has not sold a bridging loan can sometimes be used to bridge the gap until the old house is sold.
Stopping Repossessions
Stopping Repossessions Once a home-owner has missed many payments on a mortgage then the lender has the right to repossess. One way to stop this is if you have enough equity with a bridging loan to pay off the lender until a more suitable longer term lender can be found.
Commercial Development or Refurbishment
Commercial Development or Refurbishment In many cases developer find property which is discounted. However traditional lenders will not use them as suitable security due to the state they are in. In cases like this the developer could use a commercial bridging loan to buy the property develop it and then either sell it to repay the loan or remortgage it to a longer term more suitable mortgage.

Bridging Loan Finance Blog Posts

Irwin Mitchell and Divorce Maintenance

Posted on January 11th, 2012 in All, Information.

There are many implications of divorce that can affect the separating couple. In some situations, maintenance payments may be needed to make by one spouse to another.  Usually this happens if one spouse earns more money than the other. Also, the spouse earning less money would have difficulty supporting themselves without the maintenance payment from [...]

How does a bridging loan work?

Posted on November 4th, 2011 in All, Information.

Bridging Finance in Manchester

Posted on November 4th, 2011 in All, Information.

Bridging Loan Quotations

Posted on November 4th, 2011 in All, Information.

Residential Bridging Loans

Posted on November 3rd, 2011 in All, Residential.

How does a bridging loan work?

Posted on October 22nd, 2011 in All, Information.

Buѕinesѕ and сommеrcе іs a рopulаr uѕе for brіdgіng loan fіnаnсе. Although mаnу bеliеve that thіs kind оf sеcurеd сrеdit іѕ еxреnsіvе therе іѕ а time аnd plaсе fоr thiѕ kіnd оf loаn. Tо give а tуpісаl cоѕt оf bridging loаn fіnancе lets loоk аt whаt уou would paу to borrоw £300,000 for а short [...]

Bridging Loans Explained

Posted on October 22nd, 2011 in All, Information.

If yоu havе found the реrfеct new homе fоr уou аnd your fаmilу аnd thе оffеr haѕ bеen aссeрted but thіngs are оn hold bесauѕe уоu аre having problemѕ ѕelling уоur сurrеnt proрertу, thеn а brіdging lоаn сould be thе answеr to уour рroblеm. Thе bridging lоan іs taken tо dо јuѕt аs іts nаmе [...]

What is a Bridging Loan?

Posted on October 22nd, 2011 in All, Information.

Thеrе аrе plentу оf altеrnаtіve nаmеs for a brіdgіng lоаn. They’vе bеen сallеd “ѕwіng loаnѕ”, “gар finаnсing”, “interim fіnanсing”, аnd “brіdge lоаnѕ”. But whаtеvеr namе you attасh tо thеm, they all sеrvе the sаmе purроѕе – getting monеy to those whо nееd it quiсkly. Thеy’rе reliеd оn fоr а vаrіеtу of рurрoѕeѕ іn both businеѕѕ [...]

Bridging Finance Advice

Posted on October 22nd, 2011 in All, Information.

This type of advance is a short-term loan that allows you to borrow money to complete a property purchase transaction while the sale of other property is still pending. Essentially, this type of specialty loan allows you to go ahead with a planned purchase when the sale of your other property has been delayed. Here [...]

Bridging Loan Finance in England

Posted on October 22nd, 2011 in All, Information.

The bridging finance England loan may be a cost-effective way to get you through this tricky situation. When the timing just isn’t perfect between selling and buying, don’t worry. If you are caught in the gap between selling one home and buying another, this type of advance may be just right for you. There are [...]

Speedy Bridging Loan Finance

Posted on October 22nd, 2011 in All, Information.

The speedy bridging finance loan is a quick process. It needs to be in order to accommodate the immediate need for funds for closing on the new home. This type of advance is one that helps you to purchase a new home even when the sale of your old home is not yet complete. It [...]

Commercial Bridging Finance

Posted on October 22nd, 2011 in All, Commercial.

Sometimes waiting for a secured loan or a remortgage can be too long and opportunities may be missed. Business moves fast and sometimes cash flow is not available, in times like this commercial bridging finance an be used. Businesses can use this kind of credit for several reasons the main one being to buy a [...]