What is a bridging loan?
A bridging loan is type of short term borrowing which is usually intended to fill a temporary gap in funding. They are usually offered for a maximum of 12 months, although some lenders may allow you to take out a bridging loan for up to 3 years.
The rates on bridging loans can be higher than some other forms of finance, so it’s important to have a plan in place to repay the loan as promptly as possible. This will usually involve replacing it with another form of more long term finance or, if the loan was used for an investment, reselling that investment to cover the loan.
Bridging loans are commonly used as auction finance, where buyers need the money to complete quickly on a property purchase and there is no time to get a mortgage. They are also often used when a homeowner wants to buy a new property before their own has sold, especially in situations such as a broken property chain.
Why use a bridging loan broker?
Because bridging loans tends to have higher interest rates than many other types of borrowing, it is really important to get the best deal you can so keep your repayments to a minimum. Time is also usually a factor with bridging finance, so speeding up the process of finding the right loan is generally an advantage.
A bridging loan broker can help you with both of these issues, quickly finding you the best deals on bridging finance from across the market. They will usually have access to specialist lenders not available on the high street, so can access better rates. They will know how to make the process as fast and smooth as possible so you get the money you need quicker and with minimal fuss.
Get the best deals on bridging finance
Fair Loans has a team of specialist bridging loan brokers waiting to help you get the money you need to move forward, fast. Use the contact form above to tell us about your borrowing needs or give Fair Loans a call now on 0117 313 6058.