We’ve had a number of lenders contact us in the last week or so, with reductions in their interest rates for Bridging Loans.
There’s certainly a huge appetite for lending in this space at the moment.
Here are some of the reasons why people might need to use a Bridging Loan;
🟣 Buying property at an auction
🟣 Buying a second property before selling the first
🟣 Developing an uninhabitable property (unmortgageable)
🟣 To raise Short-term working capital for a business
🟣 Covering short-term cashflow issues or transaction deadlines
🟣 Purchasing land or property without planning permission
Of course, interest isn’t the only cost associated with a bridging loan. There are other fees to take into account such as arrangement fees, valuation fees and legal fees so just because one lender offers the lowest rate, it doesn’t necessarily mean the overall cost is the lowest.
Also, when taking out a bridging loan, it’s important to ensure that your exit is achievable. Otherwise you will get hit with additional fees and higher interest if you can’t repay your loan on time. Or even worse, lose your property.
If you want to find out more about bridging loans and whether they might benefit you, why not get in touch and we can have a chat.