Bridging loans can be taken out on residential, semi commercial and commercial properties. The loan is normally secured by the freeholds or long lease of the property with term of up to 12 months being the norm. Loan levels and costs vary across wide range of lenders and dependant on the client, term and type of property.
The lender will need to be provided with details of how the loan will be repaid for example i.e. sale or refinance. Bridging Loans can be an expensive way to raise finance and you must have a credible repayment plan in place. You may end up servicing two loans.
Some forms of bridging finance, such as limited company applications, will not be regulated by the Financial Conduct Authority.
- Auction finance
- Quick completion required
- Chain breaker deals
- Property not fit for conventional mortgage
- Development projects
- Land purchase
- Individual and partnership applications
- Limited company applications