A lot of people have heard about bridging finance also known as ?short-term lending? but not all know about it, its many benefits as well as how to apply for one.
Property bridging loan is more expensive than standard mortgages. This is because it?s designed for use over very short borrowing time periods, usually several weeks or even months instead of for many years.
A short-term residential bridging loan is a very flexible way that deals with a wide range of financial circumstances. These are some of the examples:
Broken home-purchase chains ? this is exactly where bridging finance method is taken out making it possible for the borrower to buy a property before completing on the sale of another, which is usually their existing home.
Small-scale property development ? short-term development finance or refurbishment loans can be used to enhance investment properties which a building society or financial institution denied to lend.
Larger scale property development ? A great number of professionals find it very difficult to obtain development funding from banking institutions in order to continue development projects. Specialist short-term loan companies may be able to provide help by giving a wide range of competitively-priced property development finance choices.
Opportunistic purchases ? Fast bridging loans lenders are the solutions.
Non-real estate finance situations ? you should use bridging to raise funds a lot quicker for a wide variety of reasons.
Mezzanine finance ? where the banking institutions are ready to lend, they may not give the specific amount needed by the borrower. Giving the solutions you?ll need are bridging loan providers. It?s known as mezzanine finance or second-charge lending.
Before opting for a property bridging loan, it is essential to have a clue how you will pay it back. It?s known as the ?exit?.
Source: http://o-ringsizechart.com/finance/the-various-advantages-of-real-estate-finance/
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