Property Bridging Finance For UK and International Property
What is Property Bridging Finance?
Bridging finance is a short-term loan designed to "bridge the gap" between the purchase of a property and securing long-term financing or the sale of another property. It is commonly used when funds are needed quickly, such as for auction purchases or to prevent property chains from collapsing.
Bridging loans are typically secured against property assets and can be used for residential, commercial, or mixed-use properties.
Key Features of Bridging Loans
- Short-Term Duration: Typically between 1 and 24 months.
- High Flexibility: Funds can be used for various purposes, including renovation or development.
- Fast Approval and Funding: Funds can often be released within days.
- Interest-Only Payments: Borrowers typically pay interest monthly, with the principal repaid at the end of the term.
When is Bridging Finance Used?
Bridging loans are versatile and used in a variety of situations, including:
- Auction Purchases: When a property must be paid for within a short timeframe.
- Chain Breaks: To complete a purchase while waiting for the sale of another property.
- Renovation Projects: For properties unsuitable for standard mortgages due to condition.
- Investment Opportunities: To quickly secure deals or fund buy-to-let purchases.
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