Bridging finance is a loan that is given out for a short period of time to help supplement your income, or to pay off debts. It can be a helpful way to improve your cash flow and keep you afloat until you can get on your feet again. Read on to learn more about how it works, how to apply for one, and what it might cost you.
What is Bridging Finance
Bridging finance is a type of short-term loan that can be used to ‘bridge’ the gap between two financial transactions. For example, if you are selling your old home and buying a new one, you may need to take out a bridging loan to cover the cost of the new home until the sale of your old home is complete.
Bridging finance can also be used for other purposes, such as raising capital for a business venture or meeting unexpected expenses.
If you are considering taking out a bridging loan, it is important to speak to a financial advisor to ensure that it is the right option for you.
How Does It Work?
If you’re looking for a short-term loan to help you finance a property purchase, Bridging Finance could be the answer. But how does it work?
Bridging Finance is a type of short-term loan that can be used to ‘bridge’ the gap between the purchase of a property and the completion of a longer-term mortgage. The loan is secured against the property you are buying, so it’s important to be aware that if you default on the loan, you could lose your home.
The loan is typically repaid within 12 months, although some lenders may offer longer repayment terms. The interest rate on Bridging Finance is usually higher than on a standard mortgage, so it’s important to factor this into your repayments.
If you’re considering using Bridging Finance to help with your property purchase, make sure you shop around for the best deal and speak to an independent financial advisor to ensure it’s the right option for you.
Why Do You Need Bridging Finance?
If you are a property developer, chances are you will need to take out a bridging finance loan at some point. Bridging finance is a short-term loan that helps to “bridge the gap” between the purchase of a property and the sale of your current property. It can also be used to help with the purchase of a new property before your current one has sold.
Bridging finance can be a useful tool for property developers as it allows them to move quickly on a new development opportunity. It can also be used to cover unexpected costs or delays in the sale of your current property.
If you are considering taking out a bridging finance loan, it is important to speak to an experienced mortgage broker who can advise you on the best way to use this type of loan to meet your needs.
Examples of where it is used
Bridging finance is a type of short-term loan that can be used to cover the cost of buying property. It is typically used when someone is selling their current property and looking to purchase a new one, but the sale has not yet completed. Bridging finance can be used to cover the cost of the new property purchase until the old property is sold.
Bridging finance can also be used for other purposes, such as refurbishing a property or bridging the gap between selling a property and moving into a new one. It can also be used to raise capital for business purposes.
There are many different lenders who offer bridging finance, so it is important to shop around and compare rates before deciding on which one to use. There are also different types of bridging finance, so it is important to understand how each one works before choosing which one is right for you.
If you are thinking of using bridging finance, then please get in touch with us and we will be happy to discuss your options with you.