What is a Bridging Loan
A bridging loan enables you to refurbish an investment property, purchase an investment property, or provide your business with much needed capital on a tight deadline.
Speed is critically important in bridging finance. It is what makes a bridging loan a fundamental tool for those who need to raise funds within a short time-frame.
Whereas a mainstream bank can take several months to agree a loan in a process that can be stressful- as well as time consuming, a bridging finance lender is often able to make lending decisions within hours of initial enquiry and release funds in less than a week, preventing borrowers from missing out on time-sensitive opportunities that come their way.
When to Use a Bridging Loan
A bridging loan can be used for almost any purpose and here are some cases Lombard Funding has funded recently:
- Purchases from auction – with fast completion in the required time frame
- Planning gain / change of use – to maximise property value and income
- Development finance – allowing a borrower to build a property
- Chain breaking mortgage – to enable a borrower to progress a purchase before completing a sale on their existing property
- Releasing cash from probate on an inherited property – so that the property can be sold
- Refurbishment finance – to maximise rental income
- Purchase at undervalue – letting a borrower capitalise on a one-off opportunity
- Tax liability – helping to clear a debt
- Raising funds for business purposes – facilitating the growth and development of a business