How Can Bridging Finance Help You?

In the UK, bridging financing entails short-term loans secured mostly on properties. It is one of the fastest funding solutions for purchases that require a fast completion, for auctions, or for trades carried out below market value. Fast bridging finance can help both individuals and small businesses while they are in-between transactions. Lenders that provide fast bridging financing in the UK deduct the loan interest from the amount borrowed, and because of this, borrowers typically don’t have to prove how much they earn.

What Are Bridge Loans Used for in the UK?

Fast bridging finance is often the best type of financing if you wish to buy property, whether commercial or residential, building or agricultural land, or raise capital to avoid the repossession of a personal or business property. Bridge loans are also popular in the UK among individuals who wish to buy bargain properties to renovate and resale or lease. The property can range from a small apartment in the city to a spacious house in the countryside. Bridge loans enable you to claim a bargain in a way that other types of loans simply cannot.

If you plan small development or self-build projects, you might find yourself in a situation in which bridging financing is the only option. Since the aforementioned projects are thought by most lenders to carry a high risk, no traditional financing will be available for them. Right now in the UK, many projects that aim to convert commercial property into residential homes fall into this category of risky projects.

 Other uses for fast bridge financing are the purchasing of an unmortgageable house and the buying of property from a landlord by a tenant at a discount. In the end, fast bridging finance in the UK can provide you the money that conventional loans cannot, and for this reason, they are extremely valuable for an investor.