What you need to know before getting a bridge loan

A bridge loan is a kind of financing that can be used to buy an investment property before the existing one is sold.

A bridge loan is a good option for those who need funding quickly and have equity in another property. Many people are unaware of the Bridge loan option, which can be helpful in overcoming short-term financial difficulties.

We will discuss the Bridge Loan in this post, explaining what they are and how they work.

Bridge Loans: How Do They Work?

Bridging loans are an ideal way to help secure funding for a new investment property without having to sell or wait for the sale of an existing one. With a bridging loan, you can secure funds based on current equity in an existing investment property and then use these funds to purchase the new property.

Using this method can expedite the purchasing process and help secure the investment property quickly. Before you can even be considered for a loan with a standard mortgage or loan there can be a myriad of forms and procedures to complete, by which time the property is likely to have been sold.

It is a short-term loan that can be used to cover the costs of purchasing an investment property. Loan terms usually range between three and twelve months, although some lenders will allow you to roll over and extend the existing loan if needed.

To qualify for a bridge loan, you need to know the terms and conditions of the loan. Loan-to-value ratios are typically 70%, so if the property doesn’t have at least 30% equity, you may not be able to get enough money from this type of financing. It is also recommended that you use a bridging calculator in order to find out what the final repayment would be and whether or not you would qualify for a loan.

Bridging loan interest charges

Bridging loans are a type of loan that has slightly higher interest rates than average due to the short repayment period. However, this rate will vary between lenders. By getting one, it might make up for the time saved in terms of the investment properties development application process. Bridge Direct is a direct lender, cutting out the middle man, therefore offering instant decisions on all of their Bridging Loans.

What are the advantages of a bridge loan?

Bridge loans are short-term loans that can be used to resolve short-term financial issues. Bridge loans have the following advantages:

Easy access to funds – Bridge loans offer short-term financing solutions. When you don’t have the time to wait for a traditional loan approval, they can be a convenient way to get the funds you need.

Purchasing a new investment property – A bridge loan could allow you to purchase a new property before you sell an old one. Purchasing an investment property in a sought-after area can be extremely helpful if you are experiencing short-term financial difficulties.

Access to quick and affordable funding – A bridge loan is a short-term solution that can be accessed quickly and affordably.

No matter what your credit score is – if you are unable to qualify for a traditional loan because of your credit history, a Bridge Loan can be a good alternative. You are eligible for this type of financing if you have sufficient equity in an existing property.

Bridging loan calculator

The bridging loan calculator is a useful tool when determining how much money one can borrow, how much interest will be paid back, and over what period. The bridge calculator should take into account all current property values as well as mortgages and charges. A bridging calculator like this can help you work out how much you would be able to borrow, how long you would have to repay it, and over what period you would be expected to pay it back.

Where can I get a bridging loan in the UK?

Finding a short-term bridging loan online can be time-consuming and stressful. There are many brokers on the Internet offering great deals, however, many of these businesses are brokers and not direct lenders, which can add extra fees and time to the loan process. You can cut out the middle man by approaching a direct lender and eliminating these additional fees. Bridge Direct is a direct lender that lends to businesses throughout the UK. Bridge Direct may be able to assist you if you have adverse credit, since each and every deal is evaluated on its own merits.

Bridge Direct has a long history of providing successful bridging loans to businesses. Here are just a few of the reasons why people return to Bridge Direct for their Bridging Loan requirements:

  • No middle men – direct access to funds
  • Instant decisions with no credit search required
  • No proof of income required
  • Adverse credit considered
  • Loans from £30,000 to £3 million
  • Speak to the decision maker
  • 1st & 2nd charges available
  • Each deal assessed on its individual merits
  • No set criteria
  • Interest rollup available

Contact Bridge Direct

You can contact bridge direct in many ways, you can contact us directly using the contact details below;

 020 3126 4969

Alternatively, fill in the contact form below and one of our decision makers will contact you shortly to help you.