Bridging Loans - What are they good for?

The attributes of Bridging Finance, speed, flexibility, easy access, make this type of loan ideal for use in many situations.

Bridging Finance can be used in many situations where other loan options are not available. A short term loan may help with emergency funding to meet a deadline or as an alternative where no other finance is available, prevention of credit defaults, credit repair and finally capital raising for any legal purpose. Bridging Loans also have their uses for home movers, Buy to Let investors, property traders, property developers and businesses or individuals that just need to raise money quickly!

When to utilise a Bridging Loan

Buying a property to renovate or refurbish prior to selling.
To buy property to renovate or refurbish prior to re-mortgaging via a buy-to-let mortgage, a useful option for those seeking to build a portfolio.
To purchase a site that requires major development and draw-down cash at various stages of the build by extending the bridging loan.
To complete an auction purchase, remember to avoid losing your deposit, you must complete within the specified time period, usually 28 days, but sometimes it can be as little as 14 days!
To purchase a property currently unfit for mortgage purposes pending correction of major defects, for example the property may be derelict or subject to mortgage retention.
To purchase a property and negotiate a discount over and above the cost of the bridging loan, by being able to complete the transaction very quickly.
To raise cash for unexpected bills such as PAYE or VAT.
To raise capital to invest in other property at home or abroad.
To settle or prevent CCJ's, bankruptcy or having your property repossessed.

From the applications listed above you can see that Fast Bridge Loans are highly suitable to many circumstances and in many cases may be the only finance solution.

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Summary

Bridging Finance can be the right choice in many situations, we can quickly assess whether this option works for you! This article covers the circumstances in which a loan using property equity may be of use.