January 18th, 2017.
What Can a Bridging Loan Be Used for?
Finding yourself in between incomes can be a difficult thing to swallow, and while you wait many a deal could fall through or you could find yourself at a temporary loss.
In these types of situations, a bridging loan can be the perfect temporary solution. If you’re unsure as to whether your circumstances fit the criteria then take a look at our bridging loan breakdown below.
Uses for Bridging Loans
1. Meeting Transaction Deadlines
Traditionally banks and lenders can take a little bit longer than we wish with approving some loan transactions, and in the world of definite deadlines this is time many of us can’t afford.
Thankfully, bridging loans can be approved within a number of days, meaning your deadlines will be met and neither you nor your business is left out of pocket as banks dot their Is and cross their Ts.
2. Chain Break Finance
It can be incredibly frustrating when a property chain breaks just as the final aspects of the deals are being ironed out.
Thankfully, bridging loans can be used to cover your finances while you find a new buyer for your home. Meaning you can go ahead and purchase your new investment, find a tenant and relish in financial security as you await the sale of your previous endowment.
3. Property Auctions
Auctions can be a place of opportunity and spontaneity, and while this is both exciting and adventurous it can often mean that properties can be purchased without the buyer having a mortgage agreement already in place.
However, when this does happen, you don’t have to miss out on your perfect place because a bridging loan can cover the costs until the bank can approve your mortgage.
4. Property Refurbishment
If your property is in need of a refurbishment, then many high street lenders may be reluctant to help out. Thankfully a bridging loan can cover these costs and be repaid upon sale.
Alternatively, refurbishment finance can help. Learn more here.
5. Landlords Looking to Expand
Building a property portfolio can be an expensive process, and many landlords are reliant upon rent when it comes to purchasing further properties.
However, to those not willing to wait, a bridging loan can help your expansion and be repaid with the extra income.
If you do find yourself slotting nicely into one of these categories, then a bridging loan is most definitely a viable option for you and/or your business.
If you’d like to learn more about how finance can help you, take a look at a few of our blogs below.