A Bridging loan is a short-term loan that provides fast access to funding. Usually the term of the loan will be between 1 and 12 months. Funds can, in some cases, be made available within 5 working days of acceptance of the formal offer.
It is important that prior to obtaining bridging finance, you are clear how you intend to repay the loan or the period over which you are estimating the loan will be required.
Bridging loans are suitable for a variety of purposes, the following list provides a few examples:
- Purchasing a second property before sale of first has completed.
- Purchasing a neglected property for repair and re-sale.
- Purchasing Buy-to-Let properties.
- Purchasing property at auction.
- Raising capital for any purpose.
- Debt consolidation.
- Purchasing an undervalued property with possible development potential.
- Purchasing property abroad.
- Avoidance of Bankruptcy orders.
- Meeting tax liabilities.