Advantages of Bridge Financing
Bridge financing or bridging loans are so called because they are usually used to provide a bridge between one property and the next when a property buyer wishes to purchase a new property without having to sell their own. It’s a lifeline for homebuyers whose chain collapses leaving them without a buyer for their own property but who still want to proceed with their property purchase.
However, bridging finance has wider applications, providing both residential and commercial investors with fast access to funds with the minimum of red tape. Unlike a mortgage, you can get bridging loans within a week so when it’s imperative that you move fast it’s often your best option. Bridging finance lenders are also less likely to want to ask questions about your credit history – provided you a property to use as security you should be able to borrow even if you have had CCJs, mortgage arrears or bankruptcy in the past.
Of course, bridging finance is not just for providing that bridge between properties – smart investors use bridging loans for all sorts of applications including purchase at auction, development finance, buy to let and refurbishment.
In short, bridging finance gives you funds far more quickly than many other types of finance, with fewer hoops to jump through.
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