Bridging Loans

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