Bridging Loans

Bridging Loans are short-term loans for a large amount of money. This kind of loan is useful for example when you want to finance the purchase of a new property, but have not yet received funds through the sale of an existing owned property.

Bridging loans are generally secured on a property or other assets of high value - meaning that the value of your asset is used to guarantee your loan. Payments are interest only, so your monthly repayments are lower as you are not paying back any of the loan principal (although lump sum repayments are possible). As these are short-term loans, the interest rate will tend to be higher than that of, say, a mortgage, making bridging loans unsuitable for long term financing, but highly useful for when you need funds fast. If you are looking for a bridging loans as a short-term mortgage or need help when switching mortgages, changing mortgages or transferring mortgages, then help may be at hand.

Depending on the lender, a Bridging Loan can be obtained by the self employed or people with bad credit. In other words to those who traditionally have found it more difficult to get loans and mortgages. In the case of buying property, Bridging Loans are normally secured by getting a mortgage on the new property, and taking out a second mortgage on the property being sold. In this case the loan will depend on a positive valuation of the relevant properties. Lenders will usually allow Bridging Loans of up to 70% of the value of the properties - less any existing mortgage. But this will depend on the lender so the brokers that we intruduce will shop around for the better deals. Based on our research, interest rates can vary enormously dependant upon the lender used. The cheapest loan is 0.75% per month (19% APR), whilst the best loan to value was a maximum of 85%.

Please note:- Many people think that they require bridging loans when moving house and buying a new home but often we can help them to arrange a new mortgage without the need to bridge. Telephone us on 01254 660101 to speak to a bridging loans adviser or complete a brief enquiry form and we will contact you as soon as possible about bridging loans