Bridging finance is a short-term loan that is used to bridge the gap between the purchase of one property and the remortgage and sale of the same property or another. It is typically used by investors who are looking to quickly acquire a property, or by homeowners who need to sell their property quickly but need to finance the purchase of a new one.
Bridging finance loans are typically more expensive than other types of loans, such as mortgages, because they are considered to be riskier. However, they can be a valuable tool for investors and homeowners who need to access funds quickly.
The ultimate goal of acquiring a bridging finance loan in the UK
The ultimate goal of acquiring a bridging finance loan in the UK is to secure the funds needed to complete a property transaction. This could be the purchase of a new property, the refurbishment of an existing property, or the development of a new property.
Bridging finance can be used for a variety of purposes, but the most common are:
The benefits of bridging finance
There are a number of benefits to using bridging finance, including:
The risks of bridging finance
There are also a number of risks associated with bridging finance, including:
The decision to acquire a bridging finance loan
The decision to acquire a bridging finance loan is a complex one and should be made carefully. Investors and homeowners should weigh the benefits and risks of bridging finance before making a decision.
If you are considering using bridging finance, it is important to speak to a financial advisor to get expert advice on the best way to finance your property transaction.
Bridging finance can be a valuable tool for investors and homeowners who need to access funds quickly. However, it is important to be aware of the risks associated with bridging finance before making a decision.
Written by: Giles Finance
Dated: 20 August 2023