If you need to borrow a sizeable amount of cash for a short period of time, a bridging loan could be the ideal solution for you. They’re quick to arrange (in comparison to a mortgage) and can be used in a number of situations where a traditional mortgage might not be available to you. Here’s 4 reasons when a bridging loan might be perfect for your needs.
Buying a property from auction
Buying a property at auction typically means you’ll need to exchange contracts immediately and fund the property purchase in full within 28 days. If you’re relying on a mortgage, that could be a difficult task as lending decisions alone can take weeks and you may incur a financial penalty for late payment by the auction house. Lending decisions on bridging loans take just a few hours and you can have the funds in your account with 21 days making property purchases from auctions possible.
Bridging the gap between buying a new home and selling the old one
The most common use of bridging loans London is to bridge the gap between buying your new London home and selling your old one. Bridging loans make perfect sense if you’ve found your ideal new home but haven’t yet found a buyer for your current abode.
Renovating uninhabitable properties
If a property is uninhabitable, the chances are you won’t be able to get a mortgage against it. Bridging loans provide you with an opportunity to borrow money for a short amount of time against the property, to make it habitable so that you can secure a mortgage against it.
Bridging loans are great for London developers looking to renovate a property and turn it around for resale in extra quick time. No more waiting eight to twelve weeks for the completion of your property purchase and no more financial penalties for paying a mortgage of early. You can have the keys and be ready to start renovating inside of 4 weeks and who knows, you might have even sold it onwards before a traditional mortgage offer had even had time to be approved.
Originally Published- www.linkedin.com/owrang-rahmani