A Bridging loan is used to cover shortfalls between buying one property and selling another. A great example of when you might need a bridging loan would be if you’re in the process of buying a new home but are let down on the sale of your existing one. It is also commonly used when purchasing a property at auction.
A bridging loan is basically a very short term mortgage and like a mortgage, it’s a loan that is “secured” against property. Bridging loans may not be regulated by the Financial Conduct Authority.
Bridging loans can be used for reasons other than buying and selling property and some of these are detailed below:
- Cashflow – when you need some cash urgently
- Inland revenue – for those unexpected payments
- Business capital finance – when funds are required for a short period of time
- Development finance – for building residential and commercial units
- Land purchase – with and without planning permission
- Overseas Property – for commercial, residential and holiday properties
If you would like to discuss your options these please contact Firstxtra now.