A bridging loan is a useful form of short-term, flexible lending. Loan terms are typically set up quickly and normally for periods from 12 to 24 months. A bridging loan offers more flexibility over traditional underwriting due to the fact there are fewer requirements for onboarding and no opening of bank accounts. The flexibility in the arrangements afforded by bridging loans can be attractive for individuals and companies requiring short-term finance for residential or commercial projects.
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A large bridging loan may be the best financial option if you are experiencing any of the following scenarios:
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You haven’t yet sold your property, and you wish to buy another property before doing so.
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You wish to buy a property at auction, and you need the funds in order to secure the purchase with the auctioneer.
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You are struggling to secure a loan with another lender because the property is in disrepair or needs extensive renovations.
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Your preferred mortgage lender is taking too long to process your application, and you need faster access to the capital.
Bridging loans offered by CBM’s lending partners can secure a bridging loan against your property or other assets. We typically work with loans that range from £150,000 to £25 million. You may be surprised to know that the security property does not need to be in the same condition as it would under other mortgage or loan arrangements.
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Interest rates tend to be calculated monthly, due to the short-term nature of the loans, and can vary considerably, currently between 0.48% to 2% per month. Speed of transaction is one of the key benefits of a bridging loan, and funds can be provided within a matter of one to two weeks, compared with 8 to 12 weeks or more for residential mortgage loans.