Saturday, 3 September 2016

What can be Bridging Finance be used for?

Bridging loans are only an option worth considering in specific financial circumstances whether you are a professional or private borrower. However, as Bridging Loans are generally provided by specialist companies all manner of situations can be considered and catered for.

Common uses for bridging loans include:
• Securing a house purchase until your existing property is sold
• Covering a break in a property chain so you can buy a new home while waiting for a mortgage
• Completing a building project, if the next tranche of your self-build mortgage is not released until stage-completion
• Renovation and redevelopment; altering an existing property structurally or cosmetically with a view to resale or refinance
• Buying a property at auction
• Funding a new business venture e.g. buying time to raise money internally and/or generate investment
• Business invoice finance to help with cash flow while you're waiting for money to come through
• Paying for work to be completed so a mortgage can be agreed; for instance, if your mortgage offer is contingent on some basic work being carried out to make it habitable
• Divorce settlement
• Lease extension
• Refinancing an existing bridging loan
Whatever your reason for considering a bridging loan it is essential that you have a clear 'exit strategy' for paying the loan back. Bridging loans from UK lenders are generally only available on properties, land or businesses based in the UK.
For further information, please visit the  Bridging Loan Section of our website or Contact Us for a free consultation about the funding options we can off

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