Uses for our Bridging Loans
The uses for bridging loans is very varied as the main feature of our product range is the flexibility of the product, common uses for our Bridging and Refurbishment include:
- ✓Meeting tight transaction deadlines – High street lenders and banks often take several weeks to underwrite and complete a loan transaction. In some cases this is not quick enough so the need for a bridging loan that can be completed in a matter of days is valuable.
- ✓Chain-break finance – Property sales sometimes fall through because one member of the chain pulls out. A bridging loan can often be granted so that the borrower can proceed with their purchase even when the buyer of their property has withdrawn.
- ✓Property Auctions – People often buy properties at auction without having a mortgage in place. Normally completion has to take place quickly and a high street lender may not be able to complete a loan in time so the speed of a bridging lender is required.
- ✓Property Refurbishments – High street lenders often won’t lend on properties that need refurbishment so a bridging loan can be the perfect solution. Once the works are completed the bridging loan can be repaid either by selling the property or by refinancing to a high street lender.
- ✓Property Conversions – Converting single dwellings into flats or vice versa.
- ✓Cash Flow – Funding for short term cash flow requirements.
- ✓Landlords looking to buy properties quickly – Many landlords are expanding their property portfolios but may not be cash rich. By securing a bridging loan across multiple properties the need for cash deposits can be avoided and with this facility in place landlords will be able to move quickly when they find a suitable property.
- ✕Credit Repair – Bridging loans are not suitable for borrowers who are in financial difficulty and see this as an option to avoid repossession proceedings.
- ✕Semi-Commercial or Commercial property – Precise Mortgages only provide loans for residential properties.
- ✕Land Development – We do not lend on land only.
- ✕Farms or Agricultural Property – We do not lend on these types of property.
- ✕No Exit – There must be a realistic exit.
