5 Major Reasons Why You Should Start Using Bridging Finance

Bridging finance is a type of short-term loan that you can use to ‘bridge’ the gap between the purchase of a new property and the sale of your existing one. It can also be used for other purposes, such as raising capital for business purposes or funding home improvements.

Bridging finance can be a useful tool if you need to access funds quickly, as the application process is usually much quicker than for a traditional mortgage. However, it is important to be aware that bridging finance can be a more expensive option, as the interest rates are usually higher.  

There are a number of benefits to using bridging finance, which include:

1. Quick Access to Funds

One of the main benefits of bridging finance is that it can provide you with access to funds much more quickly than a traditional mortgage. This can be vital if you need to complete a property purchase quickly, for example if you are buying at auction.

2. Flexible Repayment Terms

Bridging finance can also be more flexible than a traditional mortgage in terms of repayment terms. This can be helpful if you are unsure when you will be able to sell your existing property, as you can often choose a repayment period that suits your needs.

3. Interest-Only Options Available

On residential bridge no payments are made, the interest is rolled up.  This can be beneficial if you are tight on cash flow, as you will not need to repay the interest each month. The full loan amount will then need to be repaid at the end of the loan term with interest.

4. Can Be Secured against a Variety of Property Types

Bridging finance can be secured against a variety of property types, including residential and commercial property, land and even development sites. This can make it a more flexible option if you are looking to raise finance against a property that you do not intend to live in or use as your main residence.

5. Can Be Used for Financing Properties

It can be used to finance properties that are in need of repair or renovation. This can be a great way to add value to a property before selling it on, as the extra work can make a big difference to the final sale price.

Conclusion

Bridging finance can be a great option for those looking to buy a property quickly, either to live in or as an investment. It can also be useful for those who are struggling to get a traditional mortgage. 

The main benefit of bridging finance is that it can provide you with the funds you need in a relatively short space of time. It can also be a more flexible option than a traditional mortgage, with some lenders offering interest-only repayment options. 

However, it is important to remember that bridging finance is a more expensive option than a traditional mortgage, so it is important to weigh up the pros and cons before deciding whether it is the right option for you.

As a trusted bridging loan broker in London, Property Link Homes can help you secure the funding you need to purchase your new home. We offer a range of mortgage products and services, as well as home insurance and protection products. We can help you find the right mortgage for your needs and provide you with the protection you need to safeguard your investment. Contact us to learn more!