When we think of anything to do with a bridge, the obvious thing we think about is a physical bridge, very much like the one pictured above. Although, Bridging Finance is not too far from the above, we can assure you that it is not an actual bridge!
If you can imagine standing at the entrance to the above bridge… looking across to the exit of the bridge, you will be thinking “How do I get there?”. If we were continuing down the usual route, you would walk or drive, however we are not, so let us explain how Bridging Finance works….
Bridging Finance is a specialist finance product which essentially ‘bridges’ a gap in your finances to enable you to purchase a property / land or even a portfolio of properties. Bridging Finance can be used for many different things, but we will keep this relevant to property.
There are many instances when you are looking to invest in property or just purchase a property as your own home, where a “standard” mortgage may not be appropriate. It may be that you are purchasing a property which requires a significant amount of work, and a standard mortgage is not available to you. you may be purchasing a property of non-standard construction which most mainstream lenders will not like, however for a rental property, there is nothing wrong with them, they are just built differently to a traditional property. Bridging Loans are also popular for purchasing properties at Auction, as they can provide finance, quicker than a traditional mortgage. A Bridging Loan may be what is required to realise your dream, or to make the transaction work.
Bridging Loans sound great right? Well, they can be a great way forward when all other options are dwindling away rather quickly from you. You should however speak to a specialist broker who can review your circumstances and locate the best product for you. there are a lot of Bridging Lenders out there who offer similar products and services, however they all have their advantages and disadvantages, so you must speak a professional first.
You should also note that this type of finance is generally fast paced and can be a “quick” fix to a transaction where you need funds fast, however in most cases, these types of matters are becoming increasingly more protracted with more and more enquiries from lenders which we have to deal with before they will realise the money to complete. We point this out, because more often or not, we take on instructions from clients who had a solicitor who didn’t understand the process or are told some way through the transaction that they do not deal with Bridging Loans. Do not worry though, if this is you, give us a call as we have many years of experience dealing with exactly those types of issues and will do all we can to get it over the line for you.
If you are stuck and do not know which way to turn, give us a call on 0191 567 7244 or drop us an email at enquiries@cooklaw.co.uk as we can help put you in touch with the relevant people from day one, to avoid any delays to your transaction.