Bridging finance is an umbrella term for a range of short-term loan products which are secured against either a residential or commercial property.
The onus is on the words ‘short-term’, this type of loan is quick to arrange and generally taking a week or two, sometimes faster depending on circumstances.
The applicant may only require the loan for as little as 48 hours, though the product term can be anywhere from 1 to 12 months. Typically, the loan is used to bridge the gap between two property purchases falling due simultaneously, but equally this could apply to the purchase of land, or an office unit.
For example; if the proceeds of your house sale are funding your next purchase, but the sale is taking longer than expected and you run the risk of losing your onward purchase, a bridging loan would enable you to complete the transaction of your onward purchase, despite not having sold your current home.
There are a variety of bridging loan products available to choose from and investors can select a product tailored to suit their predicament. Here is a list of some of the loan options:
Residential Bridging – residential property types
Commercial Bridging – offices, shops, land
Refurbishment loans – where work is required to bring your BTL up to standard and ready to let.
Development Finance – for new build developments and property conversions, initial payment followed by the staged payment release of funding.
Auction Bridging – payment falls due usually in 20 working days after the deposit has been paid.
Call NM Finance today on 01603 258268 to discuss your requirements