Short term bridging finance can be used in many different scenarios. It is a loan which is taken out on a short term basis. Terms are typically between 1-18 months and are a way of raising finance if there is, for example, a delay in a property related transaction. If you have settled on a property you wanted to purchase, but the buyer has pulled out of purchasing your current property, therefore breaking the chain, bridging finance can be arranged. Then, once your property is sold, the loan can be repaid.
But it can be a solution for many other instances too. Short term bridging finance can be arranged for many of our specialist areas. Short term bridging loans can be used when purchasing a house at auction. If you are refurbishing, converting or renovating a property, a short term bridging loan can be provided. This allows experienced property investors and developers to purchase a property which requires work on it, to make it habitable, as well as the finance to carry out the works.
Property developers have often missed opportunities because they haven’t been able to raise finance for a project. With a short term bridging loan, finance can be raised against properties already built then paid off, once a property is sold.
Taking out a short term bridging loan is also a way or repairing adverse credit and debt consolidating. It gives you time to sort out any problem areas, ready to take out a longer term mortgage.