Buying a house for the first time can seem daunting, especially if you’re unsure what you’re letting yourself in for. After all, there’s a lot
Buying a house for the first time can seem daunting, especially if you’re unsure what you’re letting yourself in for. After all, there’s a lot
Bridging loans, also referred to as bridge loans, are a type of short-term loan taken out when you want to borrow a significant amount of money over a short period of time.
As a type of secured loan, bridging loans require an asset to be secured against them. In most cases, this asset is one property, but could be several properties, especially when borrowing larger sums.
Typically, bridging loans in the UK are taken out by landlords, homeowners, and property developers, and are used for either buying a home, property investment, or property development.
Usually, these loans are paid back over a matter of months, not years, as they’re often used while the borrower is waiting for funds to be made accessible from the sale of something else.
There are two types of bridging loans – open bridging loans and closed bridging loans. Open bridging loans have no fixed repayment date, while closed bridging loans do.
With an open arrangement, the lender normally wants the debt to be paid in full within a year, while closed arrangements have a fixed repayment date depending on when the borrower expects to have the funds to repay the loan.
What are the benefits?
What are the risks?
What Is The Criteria To Apply?
You must be able to provide a property or other asset as collateral for the loan.
You need a clear plan for repaying your loan. This could be the sale of an existing property or securing long-term finance.
There should be enough equity in the property, or the asset used as collateral to cover the loan.
A good credit history will improve your chances of approval.
You may be asked to show proof of income to demonstrate your ability to manage interest payments until you have repaid your loan.
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UK Mortgage Centre is a trading style of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. FRN – 826982. Registered in England & Wales: 11614569. As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages. The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
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