Bridging is short term finance which allows your customers to buy or pay for something without delay, before selling something else to repay the loan – the exit strategy.
What can a bridging loan be used for?
Bridging loans can be used to solve a wide range of short term funding problems. This type of finance is priced monthly rather than annually because it is a short term loan – typically 12 months if regulated or up to 24 months if unregulated.
BuildLoan’s dedicated short term funding team can provide you with 1-2-1 support and obtain the most competitive deal for your bridging clients with rates from 0.40%.
When the hammer falls, your clients will be required to pay a 10% deposit straight away and complete the purchase with the balance of funds – usually within 28 days. If they fail to complete within the 28 day period, they may lose their deposit or be charged default fees. We can deliver within these timescales.
Fast Property Purchase
Many landlords and investors are now turning to short-term finance as a means to turn around transactions quickly. We can secure bridging loans in a matter of days, allowing purchasers to act quickly when searching for a suitable property.
If you have older clients looking to downsize and they’ve found the perfect property, they don’t need to wait to sell their current home. With a bridging loan, they can use their equity to buy before the sale of their existing property.
Most mortgage products are not suitable for properties that require refurbishment or are deemed inhabitable (no bathroom or kitchen). We can offer bridging finance to solve this problem. On completion of the work, the loan can be repaid either by selling the property or refinancing.
Land without Planning
If a plot of land has been placed for sale and your clients would like to build on the land for investment purposes or personal use, we can secure a bridging loan to purchase the land before getting planning permission.
Buy to Lets
We can help bridge against buy to lets if your clients are looking to expand their property portfolio, or their chosen property is not yet rentable in its current condition.
If your client is involved in a property chain that falls through, we can secure fast funding, saving the chain from collapse and enabling them to progress with the purchase of their new property.
If your client is looking to secure commercial investment property in a hurry, we can arrange a fast competitive deal to suit their requirements.
Using your client’s existing land or main residence as security, we can raise capital for almost any loan purpose within a short period of time – to suit your client’s timescales. We can bridge on all property types whether it’s a house of multiple occupancy or student lets, our support and expertise can provide the necessary funding quickly.
An exit bridging loan could give your property developer clients an additional 18 months in which to finish their project and sell the properties. Even if they have refinanced once, we can find a solution that enables them to refinance again. This could be suitable for developers who are anxiously waiting to sell in a more buoyant market.