Bridging

What is a bridging loan?

A bridging loan is short-term loan, that helps customers “Bridge the gap” for many different purposes, until the customer can clear the loan in full or secure a more permanent form of finance.

If the customer is using their residential property as the security, they can look at a maximum term of 12 months. When you are raising on an investment property the maximum typical term is 24 months.

Bridging loans are priced monthly as opposed to annually. Although interest is charged monthly, it is normally 'rolled up' or ‘retained’ and repaid at the end of the loan term along with the initial loan borrowed and any associated fees added to the loan.

Why take out a bridging loan?

Bridging loans are used for many different purposes but are commonly used for:

• Buy a property at auction – The customer will normally have 28 days to complete on their purchase. A bridging loan would be used to purchase the property until the customer is able to exit the bridging loan by either remortgage or sale of the security property(s), if it was bought as an investment.
• Chain break – is a short-term solution which enables home buyers to complete a property and move home, while their existing property is still on the market – hence 'breaking' a chain.
• Development finance – is a funding option, it is designed specifically to assist with the purchase costs and build costs associated with a residential or commercial development project. This can be the customer building their dream home from the ground up, conversion or refurbishment covering a single unit through to multiple units built across several phases.
• Completing renovations – via a bridging loan will allow the customer(s) to complete work on a property before it is sold or if a property is not mortgageable, it would allow customers to complete the work before they refinanced or sold the property.
• Purchasing an investment property - A bridging loan would be used to purchase the property until the customer was able to exit the bridging loan by either remortgage or sale of the property

Why choose GoBear Loans?

• Expert advisors who are here to help with a no obligation consultation
• The customers can borrow from £20,000 to £30,000,000
• 2^nd charge bridging options available
• UK expat bridging loans for residential or investment property in the UK
• Rates from 0.5% per month
• Most credit profiles considered
• Secure up to 100% of the build cost
• Rebridge loan options
• 5* Google reviews