Bridging Finance, the Key to financial Success
Explore Bridging Loan options with Approvable
Explore how Bridging finance can help you get the dream property with speed and flexibility.
Why Choose Bridging Loans?
Bridging loans provide quick access to funds, allowing you to seize property opportunities without delay. Whether you’re purchasing at auction or managing a property chain, bridging finance offers unparalleled flexibility.
With no monthly payments and the ability to use any property as collateral, bridging loans are an attractive option for investors. They enable you to appear as a cash buyer, giving you a competitive edge in fast-moving markets.
Bridging Finance: A Growing Trend
Over 50% Increase in Bridging Loans since 2021
£10.9 Billion worth of Bridging Loans in 2024
Bridging Loans in the UK surged by 25% against 2023
Frequently Asked Questions
What is a Bridging Loan and How Does It Work?
A bridging loan is a short-term loan that helps you “bridge the gap” between buying a property and getting long-term finance. It’s perfect for situations where you need quick money, like buying a new house before selling your current one, or making a property purchase quickly. You pay it back once your long-term mortgage is set up or when you sell the property.
Bridging loans are popular because they can be approved very quickly, sometimes within a day.
Are Bridging Loans Common?
Bridging loans are growing in popularity because they offer fast access to funds when needed, especially in a competitive property market. In 2024, the UK bridging loan market is expected to reach £10 billion in total lending. More investors and property developers are turning to these loans to secure deals quickly without waiting for traditional financing. Bridging loans let you act fast, which is crucial in today’s fast-moving property world.
What Interest Rates can I expect?
In 2024, bridging loan rates usually range from 0.4% to 1.5% per month, depending on the loan and the lender. While the rates are higher than regular mortgages, bridging loans are quick and flexible, making them a good option when time is critical.
The cost might be a bit higher, but the speed and flexibility make it worth considering for urgent needs.
Can I Get a Bridging Loan if I Have Bad Credit?
Yes, you can still get a bridging loan with bad credit. Lenders often focus more on the value of the property you’re borrowing against than your credit score. This makes it easier for people with bad credit to get the loan they need.
Bridging loans are becoming a popular choice for people with less-than-perfect credit because they’re easier to get than traditional loans.
These simplified FAQs aim to make the concept of bridging loans easier to understand while still providing useful and important information.
What Are the Main Uses for a Bridging Loan?
People mainly use bridging loans for:
- Buying a property before selling their current one.
- Renovating or refurbishing properties to increase their value.
- Auction purchases where quick payment is needed.
- Business needs for urgent cash flow or opportunities.
Bridging loans are popular because they give you the quick cash you need to move fast in a busy market.
Key Benefits of Bridging Finance
Unlocking Financial Flexibility
Bridging finance offers a unique set of advantages that cater to both individuals and investors. One of the primary benefits is the absence of monthly payments, allowing for greater cash flow management. Additionally, bridging loans provide the flexibility to use any type of property as collateral, whether it’s residential, commercial, or even land. This versatility makes it an attractive option for those looking to secure funds quickly. Furthermore, the speed at which bridging loans can be arranged positions borrowers as cash buyers, a significant advantage in competitive markets. Whether you’re looking to renovate, prevent foreclosure, or purchase at auction, bridging finance provides a tailored solution to meet your needs.