Types Of Bridging Loans Need a loan to finish a refurbishment or secure a new home? Work with us to establish the best type of bridging loan for your needs.
Bridge Financing Example
Securing a bridging loan has become an increasingly popular way to get funding. The varying types of bridging loans available can be daunting, and you may be unsure as to which loan is best for you. For example, you might require a loan that’s going to help you to move onto your next property, or you could be looking to renovate a commercial property – but do you know what type of loan you need?
To help you out, here are bridge financing examples of the types of loans we offer:
A residential bridging loan is designed for those in-between the process of selling their old home and purchasing a new one. Typically, this is used for people who may have a growing family and are looking to upscale from their first home. A residential loan is one of the most popular types of bridging loan we offer as they can also be used to release equity for debt consolidation, to purchase investment properties, or to finish 0home renovations.
Commercial bridging loans are often required by companies or entities in order to buy commercial property. As with a regular bridging loan, they are used to release funds from a property or for a quick property purchase. You may be self-employed looking for financing to purchase your first premises, or you may be part of an entity looking to expand your growing property portfolio.
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An open bridging loan has no fixed cut-off point and no guaranteed exit route. In context: this could be used when you’ve put your house on the market but have not received an offer, so are unsure when the loan can be repaid. It could also be used if there’s a legal hold-up with the house, or if mortgage providers are taking longer than expected. Due to the risky nature of this loan, interest can be higher.
A closed loan is a common loan used by prospective homeowners. They’re often used as a way to buy a new home whilst the old home sale is awaiting finalisation. This type of loan does have a cut-off date for repayment, as in these circumstances there is usually a completion date set in stone. Closed bridging loans often have lower interest rates because there is a degree of certainty with repayment. If you’re unsure what category you fall under when it comes to open or closed bridging loans, contact our experts who are on hand to guide you through the application process.
Land acquisition bridging loans are used as short-term solutions to purchase or refinance land. This loan may be required for finance while land is being obtained or just to release funds quickly. It’s an excellent way to help developers, and investors of self-build projects, to move swiftly once the planning permission (or planning potential) is in place. Banks have become less willing to lend on these types of proposals, which is where bridging loan lenders have stepped in.
Refurbishment loans are specifically made for the renovation of properties. They’re designed for individuals, property investors, developers and landlords looking for funding. In most cases, this loan is used for those who are refurbishing a property, increasing its value to then sell it on or put it up for rent. We can fund everything from a loft conversion or extension, to complete renovation. Talk to us more about funding options for your next refurbishment project if you’re uncertain about the funding you need.
Commercial Bridge Loan Lenders
There was a time when banks would be a go-to option for a loan to fund a move or refurbishment. However, recently more applicants are turning to commercial bridge loan lenders as banks are increasingly unwilling to offer loans, due to their previous over-lending. In these instances, it may be more difficult to secure a loan from your bank.
Commercial bridge loan lenders are there for when you need to raise funds quickly. To make sure you get the most efficient service, you need a lender who understands your situation. We provide quick, professional lending options for those looking for commercial bridging loans to secure property or land.
We will consider commercial bridging loans for:
- Semi-commercial and commercial properties
- Land acquisition
- Investments or developments
Unlike other lenders, we don’t have strict lending criteria you need to meet before you can even apply. Our personalised approach means that we accept a wide range of applications, with each applicant carefully considered.
Whatever your circumstances may be, as responsible bridging loan lenders, we strive to find the perfect solution for you. For more help and advice, take a look at our info page or contact our experts.
Bridge Loan Lenders
Whilst all bridging loans are designed as short-term funding solutions, the interest rates and exit routes can vary. The role of a responsible bridge loan lender is to ensure you receive a personalised service that fulfils your funding requirements, as well as setting out a clear plan for the exit route.
Here’s what you can expect from our advisors during your bridging loan application process:
- Initial quote enquiry reply within 24 hours
- Expertise knowledge and advice
- Fast, reliable and friendly service
- Support every step of the way
How Does It Work?
We get to know you personally, offering straightforward advice when you need it most. To start, we’ll ask you a few questions about how much you want to borrow and what you’ll be using it for. This is to gather a better understanding of what loan would work for you. We’ll then provide you with a quote detailing the best deal we can offer.
Should you choose to go ahead with the bridging loan the legal department will be instructed to complete the paperwork from us to get the process moving. Your property will then be valued by a surveyor before finalisation. The funds will be released and transferred to you. The time it takes for the finance to reach you can vary. You’re then ready to start the next chapter of your life with all the support you need.