How Does Bridging Finance Work?
Typically, a property owner can raise up to 70% loan to value to bridge the capital shortfall and loans can be placed as quickly as 48 hours.
BiG Property Finance doesn’t have any hidden exit fees, unlike many lenders; however, we would advise you to think carefully about your exit strategy. This might, for example, involve getting a mainstream mortgage or a buy-to-let mortgage, or selling the property altogether.
When to use a bridging loan?
A bridging loan can be useful to raise capital for any legal purpose but, in typical circumstances, borrowers can obtain a bridging loan for the purposes of:
• Buying to let
• Auction property purchases
• Development or refurbishment to get a property to acceptable condition to mortgage
• Houses of multiple occupancy (HMO)
• Borrow against value rather than purchase price
• Raising debt secured against two or more properties with equity.
However, more recently, there has been a growing trend among borrowers to use bridging loans because high street and private banks are taking longer to process applications for larger residential loans.