Bridging loans are a key part of our business and can help clients in a variety of situations. Most commonly, we secure bridging loans for property developers, who often require fast finance on a short-term basis. We also regularly help residential clients who need finance for a short period, such as to bridge the gap between the purchase of one property and the sale of another.
Our recent case involved a client who owned their property outright and wanted to buy the land next door. However, they did not meet the income requirements for a regular mortgage. A bridging loan was identified as a good option as, having bought the land, the client could sell both the property and the land together for a higher price than the property alone would achieve.
Our Associate Director Paul Fredericks approached a lender with the proposition of a bridging loan, which they agreed to facilitate. Taking security on the property and land was more than enough collateral against the loan of £1.2m and the client has a year during which to sell both the land and property to repay the debt.
If you’re considering whether a bridging loan is the right product for you, it’s vital you seek expert advice. Our team are always on hand to offer a free appraisal of your situation, with no obligation to proceed. Contact us today to find out more.