Bridging Loan For House Purchase
What is Bridging Finance?
Bridging finance is generally utilised in the acquisition of the commercial and residential properties. Also known as Bridging Loan, this short-time financial support granted by banks or financial institutions replenish the financial gap between two transactions until main funds arrive.
Where is Bridging Finance required?
- When there is been a delay in selling your current property and you intend to purchase a new one, Bridging finance provide sufficient financial support to bridge the gap between both the transactions.
- When purchasing a property at auction and need finance to allow you to complete the buy.
- When an estate developer requires urgent funding to conclude the unfinished construction work.
Why Bridging Loans for House Purchases?
Many contracts have contingencies that allow the house buyer to comply with the terms if certain actions arise. For instance, a customer might not need to go ahead with the acquisition of the brand new home they may be in contract for unless they are able to sell their old house first. This gives safety to the home buyer if no one buys their home, or if no person is willing to buy the belongings under the conditions they desire. When the seller is in a rush and will not wait for the buyer to sell their own home first, Bridging Loan for the house purchase is the best and quickest way to finance the new purchase.
How does Bridging Loan work?
Bridging Finance offers a short-term loan until some form of permanent funding becomes available. It is worthy for both individuals and businesses during commercial and residential property purchases and is much faster than a traditional loan. Different banking and financial institutions may have different eligibility criteria and loan periods for this finance. Some institutions offer Bridging Loan for 12 months while others may provide it for 36 months. It is advisable to enquire for at least 2-3 options where you can avail this loan from before making a choice considering the rate of interest and loan term. Likewise, financial institutions may also have a different turn-around-time to disburse Bridging Loans to the borrower. Normally, banks take 6 business days to approve the case and transfer the loan amount to the applicant’s bank account. Ask your loan advisor about this during information gathering.
How many types of Bridging Loans are available?
A Closed Bridge – When you have decided and agreed upon a concrete repayment date and the date of the loan repayment is known, it is known as a Closed Bridge.
An Open Bridge – When the borrower is not certain about the expected future finance and the exact date of repayment is unknown. It is considered as an Open Bridge. This is more flexible and has a proposed time period when the loan will have to be repaid. Advisors available at Ralph Property Finance provide a detailed information about Bridging Loans before you apply and can help you to make a wise decision. Contact us here
What is the cost?
The cost varies. Bridging Finance is typically charged on a monthly basis depending on the loan criteria apart from an arrangement fee which is an administration charge levy by the lenders for arranging the credit. Alongside, there are several arrangements through which you can pay your interest on the loan amount. You can pay your interest on per month basis and in some cases, you don’t have to pay it every month but instead, pay the amount at the end of the arrangement. Alternatively, you may be able to ‘retain’ the interest from the loan amount in advance, to cover the interest payments.
How much can I borrow?
This totally depends on your eligibility, requirement and financial circumstances. Speak to the proficient loan advisors incorporated with Ralph Property Finance to discuss your case.
If you are in an urgent need of cash flow to complete a property purchase until your main funds arrive, Bridge Finance may offer the most suitable solution for you. Compared to some different kinds of finance available in the market at the same time, Bridging Finance may not usually be the most inexpensive way to borrow urgent money, it’s far very convenient. All you need to do is to contact our advisors to attain more insight on the terms and criteria and apply to get the loan approved and transferred to your bank account in a week.
Get the fast and instantly approved bridging loan for house purchase throughout the UK.
Maximum LTV – 70%
Loan Term – 6 months upto 2 years
Loan Amount – From £50,000 to £1,000,000
Monthly Interest Rate From 1% subject to status, (T&Cs apply)
Keeping such things in mind, the Ralph Property Finance is offering an influx of residential bridging loans to help people to complete their short-term access to money. This way, we help to bridge the financial gaps of the people for their growing residential development needs.
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Contact our finance expert available on call throughout the UK