Why is bridging finance growing so quickly?
In these hard times of financing it has become more important to be able to complete a deal on time. Bridging finance has grown in status year on year and seems to be going from strength to strength.
Bridging loans deliver funding quickly and efficiently which is something high street and private banks just cannot do. A recent survey of business borrowers clearly shows the most important ingredient in funding a deal is speed of completion. The survey showed that traditional lenders are just taking far too long to get funds released and deals falter due to this reason.
One client interviewed said “I have been using bridging now for over 2 years and find it efficient and very fast”. “I try to keep to the same funding source as they know my business now and this speeds things up even more”. “I would have no hesitation to recommend this type of funding just make sure of your exit strategy in place”.
Some uses of bridging finance
Site Acquisition Planning or Development
Very popular with us, funds can be made available within 72 hours. This ensures valuable opportunities are not missed, also buys the client time to get longer term financing in place.
Buy-to-lets
Probably the most popular with us now, helps fund a purchase quickly and can assist in negotiating a reduced price.
Tax liabilities
Bridging is popular when a tax demand is made for a sum that cannot be raised in the timescale given. The loan can be secured against the business premises or other suitable assets again buying valuable time.
Need help?
If you have a financial situation and need clarity of what can be done call us now and we will be very happy to talk things over.
Bridging rates reducing
Amid all the speculation that we have an interest rate rise coming our way we are happy to report our major bridging lender has just reduced its rates. The rates on offer are now the lowest we have seen for the last 9 years of funding. This is obviously great news for the borrower and shows great faith from the lender as bridging finance keeps going from strength to strength.
When to use Bridging finance?
Bridging loans can be used for a variety of reasons and the list seems to be getting longer by the day. The most popular uses are currently buy-to-let, property development and buying at an auction.
There has been a growing trend among borrowers to use bridging loans due to high street and private banks taking longer and longer to process loans. A great number of borrowers these days see this type of funding as simple, easy and very fast and this helps them achieve longer term objectives.
One thing to always remember if you are considering this type of funding is to have a clear exit strategy as all lenders will need to see this. This for example could be a mainstream or buy-to-let mortgage or you simply may just sell the property on for a profit.
Bridging finance always used to be viewed as a very expensive alternative to mainstream lending. Although it is more expensive it most certainly does have its good points and can help achieve better deals in a frantic market place. If you look at the so called “pay day lenders” and the incredible rates they charge bridging finance is very good value.
Like too know if bridging is for you?
If you have a proposed purchase on the horizon and would like to talk over the options of financing the deal then call us. We are here to help and pride ourselves on attention to detail.
That was so easy!!
Fastest Bridging have this week completed in less than a week the purchase of a property for conversion to 11 self-contained flats. We were contacted by a new client and after discussing the requirements an offer in principle was put in place in less than 24 hours.
We were given the go ahead for the deal the next day, the bridging company instructed the survey just 1 hour after we had advised them to proceed. The survey and report was completed the next day. So within 48 hours we were ready to make an offer to the client, he accepted the offer and the deal completed successfully on the sixth day.
This deal was so very simple to complete as all the parties worked together tirelessly to get the deal done. We find one of the most important ingredients to get a deal done quickly is fast communication and we are using skype more than ever to achieve this. There is no doubt one of the main reasons for faster completion these days is the ever growing means of communication.
Our client commented “This was truly amazing, I had no idea this could be achieved in such a short period of time”. “I purchased the property at a greatly discounted price but had to complete within 21 days, Fastest Bridging made it so easy and painless”. “We are all now working together to put the mortgage in place for the long term funding”.
The Deal
Property value £1.72m Discounted Purchase price £1.58m
Bridging loan value £1.25m
Need some help??
If you require some assistance or advice please do call one of our expert advisers. We are here to help and guide you through the process.