What Are Bridging Loans?

Bridging loans are a short-term funding option. They are used to ‘bridge’ a gap between a debt becoming due and the main line of credit becoming available. We are predominately talking about property transactions, but they can also act as a short-term loan in pressing circumstances. These types of loans are at their best when facilitating a property purchase that otherwise would not be possible.

How Do Bridging Loans Work?

Bridging loans are designed to help people complete the purchase of a property before selling their existing home by offering them short-term access to money at a higher-rate of interest. As well as helping people purchase homes when there is a gap between the sale and completion dates in a chain, this type of loan can also help someone planning to sell-on quickly after renovating a home, or help someone buying at auction.

Who Are Bridging Loans Aimed At?

Generally speaking, bridging loans are aimed at landlords and smaller property developers, including those purchasing at auction where a mortgage is needed quickly. They may also be offered to asset-rich borrowers who want straightforward lending on properties they own.

When Should You Use A Bridging Loan?

Bridging loans can be used for a variety of reasons, including property investment, buy-to-let and development. However, more recently, there has been a growing trend among borrowers to use bridging loans because high street and private banks are taking longer to process applications for larger home loans.

Where Can You Get A Bridging Loan?

@Pledge offer Bridging loans to all types of property owners. As long as your existing debt does not exceed 65% of the valuation of your property, then AtPledge can help. No credit checks are carried out and no proof of income is required.
If you would like to find out more about bridging loans or would like to discuss your requirements in more detail, then please call us on: 01604 901101 or contact us online.