What is a Bridging Loan

Bridging Loans have many uses but in brief are the solution to shortfalls in money that is needed on tight deadlines. A bridging loan can be either Closed or Open and this will depend on a number of factors which are detailed below and again in greater depth in each of our bridging types sections.

The most common uses of bridging finance is Deadline bridging i.e. for the purchase of auction properties and also GAP bridging. In both instances large amounts of money are needed in a matter of weeks something you cannot realistically complete with a traditional mortgage. Bridging Finance however can be obtained in 48hrs in some instances, on average 10 working days.

Bridging Finance is dependant on the available equity in a property, for example, the new property being purchased or the current property being sold. What a lot of people are unaware of, is that the loan can be secured across a number of properties / securities owned by the client as long as there is equity in each.

Because of this, the interest payments due while the loan is outstanding can often be rolled up within the loan taken, with the months not being used refunded back in the redemption figure meaning no monthly payments to meet for between 3-12months.

A bridging loan can be taken for a period of 1day to 3yrs (again depending on a few factors) and the type of bridging loan taken, the average being 5-12mths.

This opens up Credit Repair opportunities which we at bridgingmotorway.com specialise in. Bridging Loans are available for almost any purpose and are not determined by the clients credit profile. They can even be used to stop clients from being repossessed and often, when taking up our bridgingmotorway.com credit repair scheme, become Near Prime to High Street clients within 12-36mths.

To find out more about the types of bridging finance available already mentioned simply follow the link to the relevant section, alternatively see if your bridging loan needed is listed in our Types of Bridging Loan section.

 

Below are 2 examples where bridging finance can be used in an every day scenario:-

Auction Purchase- A customer was successful in purchasing a property from auction for investment purposes, but had a deadline to complete of 28 days. Although the customer's bank agreed the finance in principle they would have struggled to complete the loan within the timescale needed. The customer did not wish to lose his deposit so he contacted Mortgage Motorway who were able to complete the loan within 5 working days. Once the property was purchase, Mortgage Motorway then assisted the applicant is finding a suitable remortgage option for the long term finance.