What exactly is a bridging loan and exactly how quickly could I get one?

What exactly is a bridging loan and exactly how quickly could I get one?

Bridging finance provides another choice for purchasers to obtain funds to get a house. Bridging loans are a kind of fast, short-term secured borrowing which provides purchasers the freedom to do something quickly whenever time is vital.

Bridging loans resolve income problems for purchasers since they:

  • Provide up to 70% of loan to value ratio
  • Finance is available inside a faster timescale that a home loan
  • Versatile terms of finance, from 1 to 3 years
  • Loans from Ј25,000 upwards

Bridging loans will also be appealing while they:

  • Enable interest to be ‘rolled up’ to pay for by the end associated with the expression in order to avoid payments that are monthly
  • Fee an arrangement that is low that will be typically 2% associated with total money lent.

Although bridging loans generally speaking have actually greater interest levels than a lengthier term home loan they have been more versatile than mortgages. It is because a bridging can be obtained by you loan for a residential property that is:

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