What is Bridging?
Bridging is basically a 'short-term mortgage'. It aims to be a quick process, and a way of achieving funding quickly, without lots of hurdles that normal high street banks put in the way of a deal. A bridging loan can be used for any purpose, whether for the purchase of a residential or commercial property, or land. It can be used as a way to release funds from an existing property that you own, which can be used for any purpose you require. In terms of security, the loan is secured against a property on either a first or second charge basis, or even a combination of the two. The quickest deal we have seen has taken 3 days from start to finish from first enquiry to loan drawdown. The process though usually takes 7-14 days. The loan can be for a period of up to two years.
How much can I borrow? £30K to £20 Million.
How soon can I have the money? As quickly as 48 hours, but usually within 7-10 days.
How long is the term? 1 - 36 months (normal term 6 months)
What are your interest rates? Between 0.65% and 1.95% per month
How is the money secured? Either first or second charge over a property, or a combination of the two.
What types of property do you bridge on? Residential and commercial property, as well as land and development finance projects.
How does the existing lender get paid? The outstanding loan is settled directly via a solicitor.