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Press Release

A 2018 Guide to Bridging Loans by Central Bridging

Bridging loans are a great solution if you need finance quickly to take advantage of either time limited opportunities or to resolve emergency situations. Also known as short term loans they are usually secured against residential or commercial property but sometimes just against land to "bridge" the gap until longer term finance can be arranged or the underlying security is sold.

Once only a niche product, they have experienced huge year on year growth due to their flexibility and quick completion times. As High Street Banks have suffered liquidity restrictions and tightened their criteria new lenders have entered the market offering diverse product ranges to cater for almost any scenario, no matter how complex.

Bridging Loans can now be used for a wide variety of reasons from purchasing properties at auction with short completion deadlines to releasing funds from property to resolve pressing creditor issues. They are often seen as the ideal way to prevent a chain break, to inject money into a business or to downsize by releasing equity in an existing property to complete a new purchase but in truth there are a huge range of uses. Whatever the use however, speed of completion is usually of prime importance.

The key components of a successful bridging loan are a suitable asset, acceptable use of funds and a clearly defined exit strategy.

So how do bridging loans work?

There are two types of bridging loan, closed and open. With a closed loan there is a fixed repayment date - you will normally be given this kind of loan if you have exchanged contracts but are waiting for a property sale to complete. With an open loan there is no fixed repayment date, but you will normally be expected to pay it off within 12-18 months.

Whichever kind of loan a client takes the lender will, as stated above, want to see evidence of a clear repayment strategy; such as using equity from a property sale or taking out a longer-term mortgage.

Bridging loans are more expensive than longer term loans but are usually completed in days rather than the months that a longer-term mortgage typically takes. They can be secured against a diverse range of freehold and leasehold properties including both residential and commercial buildings and, as already mentioned, sometimes even on just on land.

A key factor in securing a fast completion is to engage the services of a solicitor who specialises in this type of lending. A lawyer experienced in bridging loans will be able to offer the best advice and make the process as smooth as possible.

Who are bridging loans aimed at?

Almost anyone who has property assets and a need for quick funding. Tailored solutions can increase liquidity, protect wealth, resolve pressing creditor problems and in many cases open up new and exciting opportunities.

Typical short-term borrowers include property investors and developers, businessmen needing a cash injection, professionals with short term credit issues such as a large tax bill and many more besides.

Still unsure & need advice? Why not consult an expert?

Central Bridging are bridging loan specialists with a great track record. They are a principal lender offering a range of loan facilities for business use from £100K to £2.5M over periods from 3 to 24 months. Their loans are secured on freehold property across England and Wales.

Crucially you will always speak to a decision maker who will take time to understand you and your situation and unlike some of the bigger banks will then tailor a solution that best suits your needs rather than their own!

Why not give them a call on 03332 400 506 for an informal chat about your options.

Media Contact
Company Name: Central Bridging
Contact Person: John Clifford
Email: Send Email
Phone: 03332 400 506
Country: United Kingdom

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