Bridging Finance

What is Bridging Finance?

Bridging finance provides short-term funding to bridge the gap between buying and selling properties, or to secure immediate capital for investment opportunities.

Key Features:

• Short-term Nature: Typically, bridging loans are for a period of a few weeks to a few months but can sometimes extend to a year.
• Higher Interest Rates: Because they are riskier than traditional loans, interest rates are usually higher.
• Secured Loans: Bridging loans are often secured against property or other assets.
• Flexibility: Lenders may offer more flexible terms compared to traditional financing options.

Benefits

• Speed of Access: Bridging loans can often be approved and accessed more quickly than traditional mortgage options, sometimes within days.
• Flexibility: They allow borrowers to act quickly on time-sensitive opportunities, such as bidding in property auctions.
• No Strict Income Requirements: Lenders often look at the property’s value, allowing those with irregular income or credit issues to secure funding.
• Tailored Solutions: Lenders may offer tailored solutions to meet individual borrower needs.

Frequently Asked Questions (FAQs)