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Bridging Loans for Property Development

A Bridging Loan is a short term loan and best described as a temporary loan that bridges the gap in your finances until you can either repay the loan in full or secure a more permanent form of finance.

Bridging Loans can provide a short term solution for property development projects.

Bridging Loans for Property Development should not be mistaken for Development Finance, which is subject to different lending criteria and is released in staged payments throughout development projects. Bridging Loans for Property Development can be better suited for property projects without the complexities of Development Finance.

Traditional mortgages commonly have a long-term repayment span of 15 to 30 years and often have a low-interest rate due to the duration of the repayment period.

Bridging Loans for Property Development have a higher interest rate because of the shorter repayment term which can be as little as 6 months.

Bridging Loans for Property Development Explained

A Bridging Loan for Property Development is a short term secured loan used to “bridge the gap” between buying a new property and selling an existing property.

They are also sometimes referred to as “Emergency Property Finance”, “Gap Financing” or “Interim Financing” and can be very useful when property has been purchased at auction. In such an event, you would need the money immediately to buy the property you have just purchased, but you might not yet have sold your current property. As a result, you require access to finances fast, which is where a Bridging Loan for Property Development can help.

At Your Mortgage Options we are completely impartial and independent with access to the Whole of the Market. This means we’re able to place you with the right provider of a Bridging Loan for your property development project, or an Emergency Property Loan that is best suited to your needs and circumstances. We can also help if your credit history is less than perfect. Learn more about bad credit briding loans here.

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Why Choose Us?

Whole of Market Access

There are different types and providers of Bridging Loans for Property Development, so only looking at deals from one lender means you’re unlikely to end up with the best option. Our specialist advisors have access to the whole of the market, including products not available from high street lenders.

We Are On Your Side

We work for you, not the lender and will act solely in your best interests. Our brokers are whole of market, impartial and independent. So you can be sure that the product we recommend will be the best available loan to suit your individual circumstances.

We Do The Hard Work For You

At Your Mortgage Options we leave no stone unturned in our whole of market research for Bridging Loans for Property Development. We also handle the whole process end to end; including all the paperwork, and where appropriate, we even help with providing solicitors and conveyancing.

We Consider Your Circumstances

We take the time to carefully assess your circumstances. This helps us to find the right loan to fund your property development project. We guide you through all of your options when helping you to find the right bridging loan.

Bridging Loans For Property Development FAQs

Bridging Loans for Property Development are available from a variety of lenders and range from around £25,000 to £25,000,000. Contact Us Today to discuss all Your Mortgage Options

Bridging Loans for Property Development can sometimes be processed very quickly, in timeframes commonly ranging from as soon as the same day to a few weeks.

Yes, you may well be able to access Bridging Loan finance for property development with less than perfect credit. The lenders look for a solid exit strategy and your plans of how you are going to repay the loan within its term. Get in touch to speak to one of our experts today and we can help you with all you’ll need to know.

Bridging loans have a relatively high rate of interest and is a larger loan over a shorter term, ideal for “bridging the gap” for the short term. Whereas a mortgage is a low interest form of financing a home taken over a time frame of up to 30 years, so much better suited to longer terms.

Involving an independent mortgage advisor to discuss bridging loans for property development earlier on in the application process gives us more opportunity to help you and reduces the stress and disappointment of not being able to secure the finance that is specifically suited to your needs.

Bridging Loans for Property Development can be used by private individuals, property investors and companies wanting to renovate property, or to develop a piece of land into one house or projects of multiple houses.

Commonly between 6 and 24 months, although really the right answer is “it depends.” Because we have access to the whole of the market and are totally independent, there are many different terms available from myriad lenders. Our job is to ensure that you find the right Bridging Loan for Property Development and place you with the right lender that’s best suited to your specific circumstances.

Bridging Loans for Property Development are typically non-status loans. This is because bridging loans are secured against the property which you can fall back on if you’re unable to repay the amount when it becomes due.

Commonly across the board, lenders have arrangement fees of around 2% of the total cost of the loan. You don’t have to pay these in advance as they are typically deducted from the total amount that you are borrowing. So if you were to arrange a £100,000 bridging loan for property development then you would receive £98,000 as an advancement. To learn more, get in touch with our team today.

It’s standard practice when assessing bridging loan finance for property development that the lender will instruct a property surveyor to carry out an independent valuation of the property, and commonly the fee for this must be covered by the borrower. This ensures that the property is worth enough to provide the security it needs to raise the bridging loan for property development and it also that the valuation of the property is accurate and realistic.

Yes. Legal fees will also need to be factored into the total cost of your Bridging Loan for Property Development both on the lender’s legal fees and your own solicitors’ also.

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