WE SPECIALISE IN RAISING BRIDGING LOANS ON BOTH RESIDENTIAL AND COMMERCIAL PROPERTY
How Does a Bridging Loan Compare to Regular Loans?
The key difference between a bridging loan and a regular loan is the speed at which you get the cash into your account. A bridging loan is mostly used for a short term purpose to get you from A – B until you can secure a more permanent form of finance. This is where it gets the name ‘bridge’ from. Typically, a bridging loan can be ready within 24-48 hours.
Open vs Closed Bridging Loans
There are two types of bridging loans: open and closed. A closed bridging loan has a repayment date that is fixed. This would be more suitable in the circumstances of somebody who has purchased a property and are just waiting for the sale to be completed. An open bridging loan will have no fixed repayment date, however, they typically are required to be repaid within 12 months.
A bridge loan allows you to purchase a property before the sale of your current one. It’s generally used by individuals who want to finance a new build project or property renovations before a traditional mortgage is secured. Commonly referred to as a ‘swing loan’, ‘gap financing’ or ‘interim financing’.
Where conventional financing is unavailable, short-term financing backed by property assets is used.
A bridging loan is a small loan secured by real estate or land for a short period. A bridging loan is a short-term loan with a tenure of 6 to 12 months. Bridging loans can be used for several different things.
A popular purpose for obtaining a bridging loan is to purchase a property that is not in a mortgageable state, which is required when purchasing a home with a traditional mortgage. Other scenarios include purchasing a home at auction with the auctioneer needing the property to be exchanged within 28 days.
Borrowers and brokers can talk with genuine decision-makers and feel confident in our ability to deliver because of our balance sheet lending expertise and committed financing lines.
We offer loans ranging from £100,000 to £25 million, with low interest rates. We are willing to lend in various industries, including residential investment property, commercial (including mixed-use), and leisure enterprises like pubs and hotels.
You can apply for a Bridging Loan in your personal name or in a Limited Company name. You also have the ability to borrow against the value of a self invested personal pension (SIPP).
Once the bridging finance has been agreed, the funds can be drawn down immediately and repaid at any time. The length of the term of a bridging loan will depend on your situation and personal preferences. If the funds are being used to finance a property development then it is a requirement to have a schedule of works for the build and also for you to add in contingency costs in case the plan goes over budget.
Simply Bridging can arrange short term finance options for clients wishing to borrow between £100,000 to £25 Million.
Residential Bridging Loans
You can utilise a bridging loan to buy an onward residential property without having to sell your present house right away. This may depend on:
- The condition of the property used as collateral
- The borrower’s financial situation
- Timeline (e.g. auction purchase)
Commercial Bridging Loans
We can arrange finance for 100% of a commercial transaction if bridging finance is secured with additional security.
- Easy to setup
- Any form of property can be utilised as security
- Damaged property can be used as security
Simply Bridging work with various funding partners and lenders as well as private individuals.We have a wealth of knowledge and established relationships with lending partners, this means we will find the right finance for you.
We will work with you to prepare your lending proposal to enable us to obtain the best possible terms for you.
The next step is to contact us on 01772 217917 to discuss your requirements in more detail, alternatively please feel free to send us an email.