Posts Tagged bridging loan. bridging loans

What Are The Benefits of Using Bridging Finance For a Property Purchase Bridging finance, also known as a bridge loan, is a type of short-term loan that is used to “bridge” the gap between the purchase of a property and the securing of long-term financing. It is typically used for real estate transactions and can provide a number of benefits for property buyers. One of the main benefits of using bridging finance for a property purchase is its speed and flexibility. Because bridging finance is a short-term loan, it can be approved and disbursed much faster than traditional financing options, such as a mortgage. This can be especially useful in situations where a property is being sold on a short timeline or the borrower needs to act quickly to secure a property. For example, if a property is being sold at auction, the borrower may not have time to secure a traditional mortgage before the auction takes place. In such cases, bridging finance can provide the necessary funds to purchase the property, with the expectation that long-term financing will be secured later. Another benefit of bridging finance is that it can be used for property purchases when the borrower does not meet the traditional lending criteria of a bank. This can include situations where the borrower has a poor credit history or is self-employed. Banks and other traditional lenders often have strict requirements for borrowers, such as a minimum credit score or a stable income. In contrast, bridging finance providers may be more willing to work with borrowers who do not meet these requirements, as long as they have a viable exit strategy for repaying the loan. Bridging finance can also be used for a variety of different property types and purposes. For example, it can be used to purchase