Why Do We Love Bridge Loans?

Here is Bridge Direct we love to help people get over the stigma attached to bridge loans and bridging lending. There are many great reasons to use a bridge loan and this is why we are passionate about what we do and want to help spread the word about using bridge loans for any business application

Here are just a few of the advantages you can get when taking out a bridging loan:

Acquire Capital Before Property Sale: A bridge loan is a great choice if you need to free up capital whilst looking to sell an existing property. You could be stuck in a chain or wanting to complete on a purchase immediately so you can begin renovation works. By using a bridge loan you can release the required funds to purchase the new property whilst you await the sale of the existing one, allowing you to avoid missing out on a purchase or wait the weeks or even months for the chain to complete.

Short-term Mortgage loan: A bridge mortgage is a temporary loan, generally spanning 6 to 12 months. Unlike a long-term bank mortgage or loan, you won’t be tied into a long-term monthly repayment scheme. All funds are paid back (including fees and charges) at the end of the term. Early settlements are also possible with bridging loans, something which will incur heavy charges with bank mortgages.

No Monthly Instalments: When you take a bridging loan, unlike a bank loan or mortgage, all funds are settled at the end of the loan term. This means that you don’t have to worry about meeting regular monthly repayments as you would with a mortgage.

Control by purchasing the property: With a bridge mortgage loan, it is possible to obtain your wanted property anytime because you are not bound by relying on the sale of an existing asset or property. For instance, suppose you are planning to buy a house and you are planning to buy the property with the help of a bank loan. Applying for and getting the funds from a bank loan or mortgage can take weeks or even months to acquire. In which time you could lose the property. By using a bridge loan you can not only secure the property but potentially complete on it as well. Giving you the breathing space and time to find the right mortgage or loan for your situation, repaying the bridge on receipt of the mortgage funds.