most common use for bridging
loan is to fund the purchase of
a new property, when you won't be receiving the proceeds
from selling another property for a month or two. Though
bridging loan may
have a higher interest
rate compared to a conventional mortgage,
it has a great advantage of gaining
the funds quickly, often within 48 hours, thereby helping
you to make some crucial property purchases.
loan can be an ideal solution for short-term finance requirements
as this allows you to act quickly when required
to secure the property you want and then refinance to a mainstream
interesting aspect of bridging loan is that it can lend 100
per cent on valuation rather than purchase price with no
redemption, so that you can borrow more than the purchase price
for development or refurbishment.
mortgages and secured loans, which are designed to be
paid back over a period of years - up to 30 years or more in
the case of mortgages, bridging loans are generally taken out
with a repayment term measured in months. So if you need a large
amount of funds quickly, bridging loans make an excellent choice
as they are much easier to arrange.