Bridging loan for 6 Months
Bridging loans are one of our most popular products, they’re flexible and versatile and can be used for almost anything in the right circumstances.
Ultimately, they’re designed to be short-term and, as the name suggests, can be used to bridge the gap between purchases, builds or projects, or even cash flow issues in business.
As long as you qualify and know how you’re going to pay the loan back then it’s very simple to get funds arranged quickly and easily to cover whatever you need them for.
We don’t have typical terms, however, many of our clients taking out bridging loans for around 6 months, and often wonder whether this term of 6 months is either too long or not long enough. We assure our clients that we can help them arrange this bridging finance for most terms.
What are bridging loans?
In very simple terms, bridging loans are short term finance that allows you to bridge the gap. They’re a loan that can be used for most things, however, are most typically used when capital is required quickly, to buy things in the short term, or to cover a short period of time until longer term finance is arranged, or a lump sum of money arrives.
Bridging Loan Examples
Here are a few examples of bridging loans we’ve arranged for some of our clients. On High Street in Kensington W8 one of our clients required a bridging loan to convert 10 apartments. We were able to arrange a bridging loan of £9,500,000 with a rate of 6.9%. Our client used the funds to refurbish an existing property and split into 10 individual apartments before then arranging further long term finance and renting them out as a landlord. Our client in Hadley Wood EN4 came to us to arrange a bridging loan to convert two properties, two houses, before arranging longer term finance with a mortgage. The client took out a bridging loan for £3,672,500 at a rate of 4.2%. Our client found a bridging finance provider after speaking to one of our brokers and agreeing terms with one of our experienced panel of lenders. Our client in Ollerton NG22 wanted bridging finance to convert 12 apartments and went through our brokers to arrange a loan of £1,501,806 at a rate of 8.5%. Our client then went on to sell these apartments after completion, exiting and finishing his loan on time.
Bridging Calculator
We’ve put together a handy and easy to use calculator here so that you can get a better idea of what a 6 month loan or bridging loans may look like. You can adjust the term, amount, interest, fees, and deposit on the calculator if you like to see what bridging loans may cost over, for example, a 6 month term, or a 12 month term. This is just illustrative, however, and if you wanted more specific advice then we’d encourage you to get in touch with one of our brokers to discuss your situation.
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Common bridging loan alternatives
Bridging finance, or a bridging loan may sometimes be used as alternative names for other types of loans, however, there are common alternatives to bridging loans.
For example, we also do auction finance, which operates much in the same way but is specifically designed to cater for our clients that purchase property at auction and, as such, require short term finance for things like paying legal fees, deposits and renovation costs.
We also do development loans, which are used specifically for our clients that are looking to complete a property development project, and the loans and finance are specifically designed for them and their needs.
Other types of loans that we see clients use are longer term options, such as mortgages or also bank or business loans. These are more traditional types of finance that we can also help with because we have a diverse range of lenders that are always looking to gain extra exposure in the UK market.
Can I use a bridging loan for house purchase?
Yes, you absolutely can and many of our clients will use this type of loan, or bridging finance, when purchasing houses or property.
Due to the varied nature of how our clients tend to purchase and invest in property, it’s often the case that short term finance is needed to help them through the process, and that’s where bridging finance, or a loan, can help them with their short term goals.
It’s also fine to sue a bridging loan for either commercial or residential property, too, which some clients are unaware of.
Ultimately, because a bridging loan is designed to be flexible and work around our clients, it means that they’re versatile enough to work in most situations.
To give an example of how they’re often used within the property sector, many of our clients will purchase a property at a really attractive rate, but it may need some refurbishment work before it will qualify for a mortgage due to the fact that it’s not habitable just yet. Clients will then use a bridging loan to carry out these works before going on to arrange a mortgage.
Similarly, many of our clients will use a bridging loan to break a property chain, so that they’re not waiting on the sale of their own property before they can purchase their next. Many will purchase their next property using equity from a bridging loan before then waiting on their own sale to complete safe in the knowledge that they won’t then lose their dream home, for example.
Other examples are when clients would like to build an extension or do works on their property that they know will increase the value of the house, and will use a bridging loan to complete those works before having their home surveyed and valued once again and re-arranging their mortgage.
There are lots of different uses for a bridging loan within the property sector, so if it’s something you think may be useful in your own situation then you should get in touch with one of our brokers to discuss your situation in more detail.
Speak to our bridging loan brokers today
We’ve spent a long time building our team, and we’re confident that no matter your needs or situation we’ll be able to assist you, whether that’s with bridging finance, a mortgage or other funding options.
We have a really experienced and friendly team that can take you through the whole process from start to finish and will dedicate their time to finding the right solution for you.
One of the huge benefits of approaching a broker is that we’re able to take the stress and worry away from much of the process and shop the entire market for you rather than you having to approach lenders directly, and because we’ve spent so many years building lasting relationships with our panel of lenders, you can be sure that you’ll have access to all our exclusive rates and offers.
So, if you’re thinking about whether this could help you, why not call for advice today?