A bridging loan is a short term finance solution generally used by property developers or business owners until they can secure a more permanent financial solution, such as a mortgage or bank loan. By using a bridge loan business owners can release capital held in existing property or assets and use this to overcome any financial difficulties and generates instant cash flow.
Bridge loans can also be referred to as gap financing or swing loans. As the name suggests a loan like this can be used to fill a ‘gap’ in our finances until a longer term funding source can be found. This commonly happens when purchasing a new property where the borrower doesn’t want to sell an existing property or the property is stuck in a chain.
Every type of mortgage and loan contains its own unique benefits and pitfalls. Nowadays, there are hundreds of different loan types available, and any number of them could look like the perfect fit for your situation. However, it is important to weigh up the different option available to you to ensure you take the right option.
Bridge loans are a short term finance solution that allow a person or company to release capital from an existing asset or property until they can secure a longer term financing option such as a mortgage, or they can raise the needed capital by other means. This type of bridge loan is generally used by property developers who would utilize a bridge loan to allow them to purchase a new property based on equity held in another property. They would then aim to complete all renovation works and sell the property before the end of the bridge loans term. By working this way they can turn around properties without having to rely on mortgages and banks, where it can take weeks or months to secure any kind of funding. With bridge loan lender like Bridge Direct you will get an instant decision on your application and in some cases you could receive the funds on the same day.
It can be quite difficult to secure any kind of loan or mortgage in the current economic climate. Coupled with the number of different products and services now offered by banks and lenders it has become a daunting task trying to understand the difference between the types of loan on offer.
The term “Bridge loans” is becoming increasingly popular throughout the UK, even though many people fail to understand of know what it means. In this blog post we will be trying explain basic information about bridge loans or bridging finance, and when these types of loans are appropriate.
In Today’s current climate, most companies in the UK are looking for alternate forms of financing when they fail to get a loan approved from high street banks or mortgage lender. In this situation, many business owners have an alternative solution in the form of commercial bridge loans, and they are designed to bridge the gap in your financial requirements until you can get a bank loan.
Short-term bridge loans are a form of financing that are provided by bridge loan lender which are usually used by homebuyers and business owners to fill a temporary financial gap that can happen when purchasing a new property, without having to complete on the sale of an existing property. Bridge Loans are becoming more and more popular because of their quick turn around and availability.