Many people shy away from bridging finance because they do not understand how it works, but it can be a powerful form of finance.
Bridging finance is often deemed as too risky or expensive, but it can be a great option to help you secure a great deal on either buying a property at auction or funding a self-build.
At CRS, our financial Advisers based in Northwich can help you understand bridging finance and how it could help you access short-term finance until more permanent finance is arranged.
What is bridging finance?
Bridging finance is a short-term loan designed to give you access to the finances you need whilst waiting for the sale of your property to go through or for your mortgage offer. Bridging finance is finance to get you from A to B, due to monetary issues, time constraints or both.
Funds are provided quickly in comparison to mortgages which makes them an attractive option. In some cases, bridging finance can be obtained in just a few days. It is also available on any type of property and is popular with auction buyers to secure rundown properties that may not qualify for a mortgage.
Interest rates and fees do tend to be higher, but with the right advice and when used correctly they make financial sense and could be the difference between losing your dream property or investment opportunity and securing it. Bridging finance is only intended for the very short-term and is usually offered for one year or less, compared to mortgages which can be in excess of 35 years.
When can bridging finance be used?
Bridging finance can be useful in the following situations:
- Chain breaks
- Bridge to bridge
- Auction purchases
- Investment purchases/buy to let
- Commercial lending
The Financial Conduct Authority does not regulate some forms of Bridging Finance.
Looking for bridging finance advice in Cheshire?
If you would like bridging finance advice, please get in touch via our enquiry form and a member of our team will be in contact to discuss your requirements and the best options for your circumstances.
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