What are bridging loans? A bridging loan (or ‘bridge loan’) can be useful if you need to borrow money for a short period. It can help to ‘bridge the gap’ if you want to buy a new home before selling your old one. Or if you need to release cash for business purposes secured against u residential or commercial property. How does a bridging loan work? There are two types of bridging loan: ‘closed’ and ‘open’. Closed bridging loans With a closed loan, there is a fixed repayment date – you will normally be given this kind of loan if
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Bridging Bridging Finance Bridging finance is used to finance the gap between when you need to pay to purchase something, but you’re waiting for funds to become available from the sale of something else. This can be used for properties in Spain, Italy, France, Germany, Austria and many other countries in Europe. Its possible to use UK property and property in Europe together so the lender places a first or second charge against both properties to ensure the client can release their expected monies. In real estate they’re often used by people who are buying a property, but are waiting
Read more →It now seems, that despite pressure from the U.S. and the IMF, Germany’s decision to hoard cash reserves and maintain low debt, to enable them to deal with a “worst-case scenario” has proven almost prophetic. This situation has now materialised, and the government has been well placed to aid Germany’s recovery with a substantial financial rescue package. The German government has been typically efficient and resilient, in its management of the virus and its financial support given to its workforce. They have confounded many countries with their low death rates and stable unemployment figures. The property development market has continued
Read more →General Overview As we finally see Europe starting to ease restrictions and get back to work, with shops and business’s beginning to reopen we must start to evaluate the potential impact on the lending and, in particular, German Bridging Finance. It has been well reported even by the most partisan of media, that Germany has lead Europe in its response to this pandemic. The economic impact appears to be less, at this stage, than other countries, with GDP only falling 2.2% in the first quarter against neighbouring countries with a fall of 4 to 6%. The unemployment rate went from
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Bridging Lending – How Much Can I Borrow? Short-term finance such as bridging loans can be a very helpful form of short term quick finance for the right borrowers depending on your circumstances. They can solve time-sensitive property purchases such as properties bought at auction, unmortgageable properties or gaps in finance when up-sizing or downsizing. The amount you can borrow is dictated by your current situation and relies on multiple different factors. The main factors which will affect how much you can borrow are: 1. Your bridging lender! This is the key area where advisors like us make can make
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