Bridging Loans for Property Development
Generally speaking, bridging loans are predominantly aimed at professional landlords and amateur property developers who need quick access to funds to purchase a property at auction or to pay for refurbishments.
In recent years, the banks and building societies have become increasingly risk averse in respect to their mortgage lending. When you have a property in your sights with plenty of investment potential, the last thing you want is for the hesitancy of your lender to let you down. This is why, when property developers need fast access to flexible finance, they are increasingly turning to bridging loans for the short term solution they need.
Fast, flexible, short term finance
A bridging loan provides the versatility many property developers and professional landlords need. This form of finance is suited to a wide range of circumstances, including:
- On auction day, when you need to pay a deposit there and then, the pre-auction bidding facility provided by some specialist lenders can ensure the finance you need is in place.
- If you have a 28-day deadline to raise the rest of the capital for a property purchased at auction, a conventional mortgage will not always be ready in time. Bridging finance can ‘bridge’ the funding gap to make sure the sale goes through.
- Some mortgage providers will not lend on properties that lack amenities or require essential repairs. Property refurbishment bridging loans provide the funds you need to install a kitchen or bathroom so you can remortgage the property or sell it on for a profit.
- Bridging loans on land can help you buy land that does not currently have planning permission, allowing you to move ahead with the deal.
How can we help?
At Mortgage Advisor.co.uk, we work with a leading network of mortgage advisors and bridging loan specialists who know which lenders to approach to find the best deal for property developers. The best deals on bridging loans are changing all the time, so a bit of professional advice can go a long way.
To discuss your requirements for bridging loans for property development, please complete our enquiry form and a specialist advisor will be in touch to provide a free, no-obligation initial consultation.
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