A bridging loan, also known as a bridge loan, is a type of short-term financing that is designed to provide immediate cash flow to a borrower who needs to cover a temporary financial gap between the purchase of a new property and the sale of an existing one.
In other words, a bridging loan is a short-term loan that is used to "bridge" the gap between the sale of an existing property and the purchase of a new one. This type of loan is often used by property developers, real estate investors, or homeowners who are looking to buy a new property before they have sold their existing one.
Bridging loans can be used for a variety of purposes, including:
Purchasing a new property before selling an existing one
Refurbishing a property to increase its value
Financing the purchase of a property at an auction
Paying for unexpected expenses or emergencies
Funding a business venture or investment opportunity
Bridging Loans Advantages
The main advantage of a bridging loan is that it allows borrowers to access funds quickly and easily, which can be useful in situations where time is of the essence. However, it's important to note that bridging loans usually come with higher interest rates and fees compared to traditional loans, as they are considered to be higher risk due to their short-term nature.
Bridging loans can also be secured against the borrower's existing property or the property they are purchasing, which means that if the borrower is unable to repay the loan, the lender can sell the property to recover their money.
As with any type of loan, it's important to carefully consider the terms and conditions before taking out a bridging loan, and to ensure that you can afford to repay it on time.
There are a number of bridging finance options available in the market and we can help find the right solution for you. We will consider bridging finance options compared to other solutions where applicable and discuss the most appropriate mortgage for your needs.
DISCLAIMER
Whilst Robin Hood Mortgages Ltd take all reasonable steps to ensure the accuracy and timeliness of the information contained on this website. We cannot guarantee this and accept no liability for any errors or omissions. Any information provided on this website is for information purposes only. Full advice and recommendation can only be obtained by a suitably qualified adviser. Under no circumstances should any of the information contained within this website be construed as advice. You should seek professional advice in respect of your own circumstances. The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK.
think carefully before securing other debts against your home. your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Robin Hood Mortgages Ltd is Authorised and regulated by the Financial Conduct Authority under reference 987739. You can check this on the FCA’s website www.fca.org.uk or by contacting the FCA at 0800 111 6768. The firm is registered in England & Wales at P.O. Box 11018, Nottingham, NG5 0NE. Telephone: 01156 712351 under reference 11416342.
If you wish to register a complaint please write to the address above or email us on info@robinhoodmortgages.co.uk
A summary of our internal procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.
Although Robin Hood Mortgages are regulated by the Financial Conduct Authority, Business Finance, Loans and most buy-to-let and offshore mortgages are not regulated by the Financial Conduct Authority.
A Protection plan will have no cash-in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse and you may not be covered if a claim is made.
We do not charge a fee for residential mortgage advice. We charge an administrative fee for processing each of your mortgage contracts; our fees only apply when you decide to go ahead with an application.
