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Cardiff Bridging Loans

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Bridging Loans in Cardiff

GPS Financial are property finance specialists based in Cardiff, providing a variety of bridging finance options throughout the UK.  

Bridging loans are designed to act as a ‘bridge’ to enable you to buy a property before your current property has sold or before traditional finance is in place.

In a market as fast-moving as ours, you must move quickly if you find the perfect property in Cardiff.

If you need fast cash while you prepare a mortgage or sell a current property, for example, you can use a bridging loan.

Bridging loans are also frequently used to finance purchases at property auctions or for development or commercial purchases where traditional mortgages wouldn’t be the best option.

Bridging loans are secured on your property just like a standard mortgage.

Closed bridging loans have a set repayment date and are ideal for enabling you to buy a new property while an existing one is being sold.

Open bridging loans don’t have a set repayment date but will have an expected repayment date, typically 1 or 2 years.

How do Bridging Loans work?

A bridge loan is a type of short-term funding designed to help individuals and businesses manage cash flow to buy a property. It is usually taken out for a period of up to 12 months but can be extended if the borrower needs more time to arrange longer-term finance.

The lender generally requires the borrower to have a deposit or equity in another property, which will be used as security against the loan. 

The bridge loan provides funds that are used until the permanent financing is secured, at which point the bridge loan is paid off.

This type of loan typically carries higher interest rates than traditional loans due to its short-term nature, but it can provide an effective solution for those looking for quick access to capital.

How much can I borrow through Bridging Finance?

Bridging finance is a type of short-term loan that can provide you with access to quick finance when you need it. It is generally used for bridging the gap between buying a new property and selling an existing one.

The amount you can borrow through bridging finance varies depending on the lender, your financial situation, and the property. Generally, lenders will allow up to 75% of the value of your current property as collateral for the bridge loan.

However, this percentage may vary based on other factors such as location and the loan-to-value ratio. You should speak to several lenders to get the best deal possible before committing to a bridge loan.

Keep in mind that bridge loans usually have higher interest rates than traditional mortgages due to their shorter terms, so be sure to research all your options thoroughly before making a decision.

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Bridging Loans can be used for:

Bridging loans can be a great tool to help you with your property transaction needs. These short-term loans provide you with the funds you need when you need them, right away. 

Bridging Loans can be used for a number of circumstances including:

For example, if you are looking to redevelop a property in Cardiff, but need finance quickly, then a bridge loan may be the right choice for you.

A lender can provide you with the funds needed as security against the mortgage of your chosen property. This way, they are able to provide you with enough money to purchase or redevelop the Cardiff property without needing to wait for a longer period of time.

Bridging loans can provide the essential finance required for any type of property transaction and give you peace of mind that your needs are taken care of.

What are the alternatives to A Bridging Loan?

It is possible to pay by cash, or some banks have loans that can be converted from a short-term to a long-term. 

For instance, if you plan on turning a property into a house of multiple occupancy (HMO), then some lenders will initially provide a Bridging Loan, and once the renovation is finished, they switch you to an ordinary mortgage. 

This helps to reduce costs.

How long does it take to get a Bridging Loan?

A bridging loan amount is usually set as a percentage of the total real estate value and is typically paid back within 12 to 24 months. 

Depending on the borrower’s situation, it can take anywhere from several days to several weeks to obtain approval for the bridge loan.

The time frame can be shorter if all documents are in order and lenders have an existing relationship with the borrower. 

Additionally, factors such as credit score and financial history also play an important role in determining how quickly a loan can be approved.

Why choose GPS Financial

As a team of experienced property finance professionals, GPS Financial are here to discuss all the options available to you for your project, including bridging loans for property development.

We will sit down with you and explore your situation and the details of the project you have in mind. 

Because we work with many lenders – ones you won’t find on the high street, we can save you time and legwork researching the market for the right lender to match your required loan amount and cash flow needs.

We will strive to help you save money by finding the most reasonable interest rates for your bridging loan, including taking into consideration any arrangement fees.

In addition to getting the right product, we make sure you have a logical way out and a plan to finance the finished property if necessary.

GPS Finanacial are award winning property finance specialists based in Cardiff, taking home the award for Best Firm: Bridging & Commercial in 2022, selected by Dynamo for Intermediaries, one of the countries foremost Mortgage Clubs.

If you’re considering a bridging loan in Cardiff, contact GPS Financial today, fill out the contact form at the top of the page and one of our expert advisors will get back to you.

Why GPS Financial?

Leading property finance specialists
We remove the stress and the paperwork
Match you with the right deal for you
No case too big or too small