Bridging Loans
Bridging loans are a short term loan to provide temporary financing until more permanent finance can be found.
What are bridging loans?
Bridging loans, or short term finance, is a loan to provide temporary financing until more permanent finance can be found. As such, it is a useful source of funding for a variety of purposes.
For example, you may be looking to:
- Buy a Buy to Let property that’s currently un-lettable.
- Need to secure a new home before selling your current property.
- Purchase a new home that’s currently un-mortgageable due to condition.
- Maybe you’re looking to buy at auction and need monies fast.
There are many reasons short term finance may be required. Please contact us to discuss your needs.
What security do you need for bridging finance?
Importantly Bridging finance is normally secured against the property you are purchasing. However, if you own more land or property, there is potential to use this in order to secure the required amount.
How much deposit do I need for short term finance?
A 25% deposit is common to obtain bridging finance. However, it is possible to obtain 100% or more of the purchase price. Importantly, this would depend on what else could be used as security.
I need to borrow more than the purchase price of the property.
If you need to borrow more than the purchase price you would need to be able to provide more than one form of security, for example another property.
For example, by utilising two or three other properties you could secure bridging finance for £200,000 with the purchase price at £170,000.
LSR Mortgages does not deal directly with Bridging Finance. Your details will be passed on to one of our trusted associates for full details and applications.
