Short Term Bridging Loans
Short term bridging loans from GPS Financial can be the ideal solution for property purchases where time is of the essence.
Short term bridging finance can provide anywhere between £25,000 and £25 million for up to 12 months at very competitive rates.
Pay back when you like, as quickly as you like. A short term bridging loan is designed to provide the flexibility you need in a fast-moving property market.
Whether you’re a large commercial landlord or individual looking to buy a home, a short term bridging loan can provide fast, flexible finance.
You can use short term bridging loans to:
- Buy a property at auction
- Complete on a purchase while your mortgage is still being processed
- Complete a purchase while waiting for your own sale to go through
- Support a chain break
- Develop or renovate a property so it qualifies for standard finance
Short term bridging finance can be anywhere up to 18 months but could also be for as little as a few weeks.
They are flexible by nature, designed to enable investors and individuals to move quickly on property transactions and not lose out on opportunities.
GPS Financial works with a pool of first-tier lenders willing to provide fast decisions. You could have a decision in hours and your money within days. Just what you need in a market that moves this fast!
What is a Bridging Loan?
A bridging loan is a type of short-term finance used to bridge the gap between the purchase of a new property and the sale of your current property.
This loan is a short-term loan that is secured against the borrower’s new or existing property and/or other assets.
The loan is usually taken out for a relatively short period of time, typically between 6 to 18 months, but you have the option to pay off the loan as quick as you like, if the funds become available for you.
The purpose of a bridging loan is to provide the borrower with immediate funding, which can be used to complete the purchase of a property.
Once the property has been sold, the loan can be repaid.
Bridging loans are commonly used by property developers and investors who need to access quick and flexible finance to fund a property purchase.
How quickly can you get a Bridging Loan?
If you are in pressing need of funds to bridge the gap between two major transactions such as selling a property and buying a new one, a bridge loan might be your ideal solution.
So, how quickly can you get a bridging loan?
The answer depends on the lender you choose to work with and the documentation you have ready.
Some lenders can process your loan application within a couple of days, while others may take longer.
In any case, you should have all the necessary documentation such as proof of income, value of the property, and equity readily available to speed up the process.
It is important that you do not rush into securing a bridging loan from just any lender, as you need to weigh your options and consider the interest rates and the loan terms carefully.
Make sure you do your due diligence and work with a reputable broker who can satisfy your financial needs within a reasonable time frame.
How much does a Bridging Loan cost?
If you are looking to take out bridging finance, you will need to factor in the cost of the bridging loan, which can vary depending on the lender.
However, the cost of a bridging loan can be quite high compared to other types of loans.
The cost of the loan is typically a combination of fees and interest rates based on the loan to value, loan amount, and the duration of the loan.
In general, lenders will offer a loan amount that is equivalent to a percentage of the property’s value, typically anywhere from 70-85%.
This means that if, for example, a property is valued at £500,000, a borrower could potentially secure a bridge loan for up to £425,000.
It’s essential to find the best bridging lender who offers competitive rates to minimize the cost of a bridging loan.
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What can I use a bridging loan for?
Bridging loans can be arranged for a variety of reasons, one of the most common being property development.
A short-term bridge loan can provide developers with the necessary funds to complete a project while waiting for long-term development finance.
Bridging loans can be used for a variety of different circumstances including:
- Commercial Bridging Loans
- Bridging Loan Property Purchase
- Bridging Loan for Property Development
- Regulated Bridging Loan
- Auction Bridging Finance
- Bridging for Refurbishment
- 100% Loan To Value (LTV) Bridging Loans
- 85% Loan to Value (LTV) Bridging Loans
- 80% Loan to Value (LTV) Bridging Loans
- 75% Loan to Value (LTV) Bridging Loans
- Bridging Loans for Unmortgageable Properties
With the flexibility to use bridging loans for a range of purposes, the loan can be customized to suit individual needs, whether that’s to make a property purchase, complete a renovation, or fund a new project.
Are Bridging Loans regulated?
Regulated bridging loans is a type of bridge finance options that is subject to regulation.
This means that they are authorised and regulated by the Financial Conduct Authority (FCA), ensuring that lenders follow a set of strict guidelines to protect consumers.
Regulated bridging loans are typically used by borrowers who need to secure funds to purchase another property but haven’t yet sold their current one.
These loans can also be used for commercial bridge financing, where a borrower needs finance to secure a commercial property for business purposes.
It is important to note that not all bridging loans are regulated, and unregulated bridging loans may not offer the same level of protection to borrowers.
To secure the best bridging loan, it is recommended to work with a reputable lender who offers regulated bridge loans.
Why Choose GPS Financial?
GPS Financial was started in 2011 with the objective of eliminating the difficulties associated with handling paperwork and incorrect information when it comes to obtaining a mortgage for your property.
We’ll take care of everything, so you can be confident that the team at GPS will find the most appropriate financing option for your needs.
Based in Cardiff GPS Financial is an award-winning property finance specialist, taking home the award for Best Firm: Bridging & Commercial in 2022, selected by Dynamo for Intermediaries, one of the country’s foremost Mortgage Clubs.
GPS Financial is a group of experienced brokers who have years of combined knowledge in the industry. We have access to all the top lenders, guaranteeing you receive the most value and best possible service.