A bridging loan can be an excellent choice for people who need to complete the purchase of a property but still have another property to sell. Often, they are used by property developers as a short-term loan agreement where time restrictions are in place. In essence the funding is used to bridge the gap between a debt which is due and credit becoming available.
The NGI team have recently helped a first-time property developer to release funds on a project that had not been completed allowing them to use the advancement in cash in order to invest in a second opportunity.
A bridging loan is one that property developers can utilise regularly, an area where it works well is when a property is purchased at auction and a mortgage is needed quickly to finance the deal. It is also a good choice for asset-rich borrowers looking for simple and speedy solutions on residential sales. In recent years the popularity of bridging loans has increased because mainstream banks are stretching out the process of funding applications and taking much longer to complete deals. They are now seen as the simple alternative to lending on the high street.
If you are looking for a bridging loan, please call us on 01993 706403 or e-mail enquiries@ngiresidential.co.uk.