Bridging Loans Brokers

Residential and commercial bridging finance specialists

What is a bridging loan?

Bridging loan is short term loan available usually for a period between 1 day and 12 months but we can offer commercial finance for up to 25 years. Bridging loan can be used in many different situations by both residential and commercial customers. The need for short term funds may arise at any point of time. Bridging finance is to fulfill requirements usually in emergency and crisis situations like buying new property before selling an old one, finish residential or commercial property development, buying property at auction, upgrade or refurbish property, chain breaks, business cash injection, business expansion, raise funds on unmortgageable property, or to pay an urgent unexpected bills

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Our Team

BridgingLoansBrokers is a group of UK specialist short term finance brokers. We are not restricted to any lender or panel of lenders. As independent brokers we offer advice based on the whole market for both commercial and residential clients. We pride ourselves of having access to many loan providers from high street banks to small private investors, with the number growing on a regular basis which enables us to pick the one that serves each client best.

We are very transparent with all our services and you can be sure that what you see is what you get.

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What we can offer?

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Bridging finance for property development

Imagine there is a shortage of cash in the midst of a development project. The worst that can happen in such situations is that the construction work stops. Costs increases with each day of delay. If this is not the way you would like your development project to go, then development bridging finance will play an important role. A development bridging loan has been designed primarily for those involved in the construction industry. Development projects run to tight timetables. Unless a continuous supply of capital is ensured, there are chances that the project is unduly protracted or ceased. Through bridging finance, the builder can have instantly the amount that is required for the development project. This ensures that work is not hampered and continues smoothly. Flexibility is one of the principal features desired by borrowers. We ensures that its customers get maximum flexibility on the terms, whether it is the method of charging interest or the method of repayment of a loan. Borrowers have sufficient discretion in the manner in which they can receive their finance. Bridging loans are offered for conversion purposes also. Hotel owners can thus get funds through bridging finance for conversion into residential flats. Similarly, bridging loans may be employed for extra construction on a pre-existing flat, apartment, hotel, etc.

Bridging loans for property auctions

Have you considered bridging loans for property auctions? The housing market in the UK, has recently reached the lowest point for years. Economic forecasts now predict that the market has steadied and will slowly start to grow. For those of us interested in investing in either residential or commercial properties, the times ahead should now be more stable, and there should be slow growth over the next several years. If you are someone who wants to create an investment by buying property, then prices are now as competitive as you are ever going to see. The recent budget in the UK has once again put the entire property market on centre stage, especially the element known as the “Funding for Lending scheme”. To generate growth in the property market this scheme will allow buyers to take advantage of shared equity loans which in essence will cover off the high deposits now being requested by mortgage lenders. The net impact of this Government announced scheme, is that buyers especially first time buyers now has an increased opportunity to either get their first home or to upgrade to a better home.

Understanding Property Auctions

More and more houses are being sold in what are called property auctions. In simple terms this means that homes and businesses properties are placed in an auction type scenario and they are sold to the highest bidder. This is an exciting prospect, potentially very profitable and the main beauty is that once the hammer falls, you own the property. There is no danger of a sale falling through at the last minute. Now of course you do need to know what you are doing and research is highly important. You need to find the auction, get a list of the properties available, and pick those that you like and then go and see them. Clearly you need to understand the value of houses in that area and also understand what extra money you will need to develop them. A typical auction house sale has only got a 4-week span from first being advertised to sale day so time is of the essence. You therefore need to do comparisons to other properties in that area quickly, taking into account the condition of the property and understanding what is called the “going rate”. Once you have decided on a property almost all auction houses will give you a legal pack and is crucial to read this through and through. If something strikes you as odd then you should discuss this with your solicitor.

Arranging finances for auction property

These must be done prior to any auction. In the UK at especially in the property auctions the agreement is that you should have a 10-20% deposit available on the day of the auction and you must pay the remainder off within 28 days from that first purchase. It is important to understand that if you fail to pay off the remainder then you will lose your deposit so make sure that you are never in this position.

Using a bridging loan for property auctions

If you are cash rich then you would never need to consider a bridging loan as means of financing a house bought at auction. However, the vast majority of buyers are not in this fortunate position, and must resort to other methods of financing their new purchase. Mortgages, if you can get one, are certainly one method but in the most cases is impossible to arrange it within 28 days. More popular option is what is termed bridging finance. A bridging loan is a short-term financial solution that can be used by either a consumer or a business. They come in two distinct types open and closed. An open bridging loan has no fixed repayment date whereas a closed bridging loan will have a defined repayment date. An open bridging loan, as it is more flexible, will have higher interest rates than a closed one. Therefore it is a decision for you and will depend on your own circumstances. If you are certain that you can make a final repayment date then you would opt for a cheaper interest rate. If you wanted a more flexible approach then the sacrifice for that freedom is that you will have to pay higher interest rates to obtain that financial freedom.

All email and phone enquiries are answered by experienced brokers who are always happy to provide quote and answer any questions that you may have. We are very transparent with all our services and you can be sure that what you see is what you get. This means that we don’t have any hidden costs that you might come to know of later on after you have signed the contract.

Your property may be repossessed if you do not keep up repayments on a mortgage or any other debts secured on it.