Why Use a Bridging Loan?
Bridging loans are a short-term loan that can be used for a wide range of purposes where a standard mortgage is not immediately the most suitable option. Castle Financials ‘High Speed Bridging Loan’ solution means that completions can often be done within just a week.
Popular Uses of Bridging Loan Finance
Meeting tight transaction deadlines – When speed of completion is key
High street banks often take several weeks sometimes months to underwrite and complete a loan transaction. This may not be quick enough to complete the transaction, so the need for bridging loan finance that can be completed in a matter of days is valuable.
Property Auctions – When speed of completion is key
Clients often buy properties at auction without having a mortgage in place. Normally completion has to take place quickly and a high street bank may not be able to complete a loan in time so the speed of a bridging loan finance is required. Bridging loan Finance can be especially useful for purchase at auction, or if the property is to be developed and sold within a short time frame.
Property Refurbishments / Property Conversions – Acquiring un-mortgageable properties
High street banks often won’t lend on properties that need refurbishment so bridging finance can be the perfect solution. Once the works are completed the bridging finance can be repaid either by selling the property or by refinancing. Funding development or refurbishment projects of property not immediately ready for letting.
Capital raising – Capital raising for personal or business purposes
If you need cash, unlock the cash tied up in your current property(s). Tax Liabilities / Payment of Inheritance Tax Raise finance for any loan purpose against an existing property byway of a first charge or second charge or even a third charge. We will endeavour to help you whatever your circumstances and credit status.
Chain break finance – Preventing a chain break
Downsizing, when a traditional mortgage is unavailable Property sales sometimes fall through because one member of the chain pulls out. We know that moving to a new house can be stressful. Waiting for your house sale to finalise, while also securing a new home is made easier with a Bridging Loan. Bridging Loan finance can often be granted so that the you can proceed with your purchase even when the buyer of your property has withdrawn. Secure your new home, while the sale of your old house finalises.
Are you a landlord looking to buy properties quickly?
Many landlords expanding their property portfolios may not be cash rich. By securing bridging finance across multiple properties the need for cash deposits can be avoided. With this facility in place landlords will be able to move quickly when they find a suitable property.
*Typical fee for advice is between 0.5% and 1% of loan value. Protection is also available for people underlying health conditions, subject to underwriting.