Don’t miss out on your dream property or next project. Take out a bridging loan to fund a new purchase while waiting to sell, or even to buy some time.
If your exchange deadline is looming, auction property closing or any other conditional deals, we can help.
A bridging loan helps to ‘bridge’ the gap between buying a new property and selling an existing one. It allows you to borrow money for a short time, giving you the funding to either buy outright or put down a deposit.
You can borrow money against an existing or new property with the intention that you will repay the loan in the short term from the sale of the security property.
You’ll need to have a repayment strategy and approximate timescales, however the general set up can be very flexible.
Whatever your situation, our huge panel of lenders will be ready to assist you quickly and efficiently with no hassle.
Bridging loan providers can lend anything between £25k and £25m.
This is to ensure that after the sale the loan can be repaid.
Usually, bridging loans are priced monthly. However, they are more expensive than the average mortgage as they are only short-term. There are also set-up fees involved, therefore you must have a clear repayment plan in place before you go any further. Lenders will offer you the choice of servicing the interest meaning monthly payments or rolling it up meaning it comes off your initial loan.
If you need more advice, our finance experts are happy to help.
Lendese Commercial Limited is an appointed Representative of Commercial Finance Brokers UK Limited which are authorised and regulated by the Financial Conduct Authority.
Lendese have access to thousands of finance deals, including many exclusive deals not available elsewhere, along with specialist lenders who can assist with unique situations.
A bridging loan is a short-term loan that allows you to borrow money for a defined period. They ‘bridge’ the gap if you cannot sell your property before purchasing your new property. Or if you need to buy quickly at auction or anything with a dealine, a bridging loan can be a great choice.
Due to the short term nature of a bridging loan, you can anticipate that the required deposit will be larger than that of a standard residential mortgage. Typically you can expect to put down at least 15%
Every lender is different and may have a list of criteria that you must meet. However, generally, you must:
If you plan in advance and provide a sensible exit strategy for repayment, this keeps you in control and eliminates risk. The most considerable risk involved is relying on the sale of your previous home to pay off the debt borrowed in your bridging loan so you should always ensure there is suitable equity.
If there is an issue with the sale of your home or a delay with the buyer, this means you may not receive the money you need to make your repayments.
Most people require bridging loans for short periods with urgency. Therefore a bridging loan can take anything from around 72 hours to 2 weeks to arrive, depending on the amount of information needed by your lender.
Therefore there should be no reason for you to miss out on that stunning property with a deadline looming.
