DISCOVER BRIDGING FINANCE AND WHAT IT COULD MEAN FOR YOU
A type of short-term loan secured by property, this option can fund you for a period of time usually 12 months whilst you refinance to exit or sell the property. GMS Capital Group Ltd can get this in order for you and have 3 day completion options available. Contact our UK team to find out how we can help fund your next project
FIRST CHARGE BRIDGING LOANS FROM 0.49% AND UP TO 75% LOAN TO VALUE
Second charge rates also available
Bridging loans are usually offered for 1-18 months, with the loan repayable in full at the end of the term. Unlike other forms of borrowing, the monthly interest is often rolled into the loan, meaning there are no repayments to make during the term of the loan. The application process is usually far simpler than other types of borrowing, and applications can complete very quickly, typically from 5-28 days.
Bridging finance can be offered against almost any property or land and can be used for a number of different reasons. Our experts have worked with many businesses, just like yours, across the UK, so we can help you determine whether this type of funding is right for your situation.
COULD THIS BE THE SOLUTION FOR YOU?
The main uses:
Purchasing a property quickly – such as auction purchases
Buying uninhabitable property
Funding property restoration or conversion work
Buying property under market value
BENEFIT FROM BRIDGING FINANCE
Simplicity for clients
Bridging loans are undoubtedly a very useful tool when looking to raise finance. Applications are usually completed in less than 14 days, making them ideal when funds are needed quickly. As there are often no monthly repayments to make, bridging finance can be used to raise capital where cash flow is tight but you have the assets to comfortably repay the loan.
IS YOUR PAYMENT METHOD VIABLE?
Things to think about
The main question you will be asked when taking out a bridging loan is how you intend to repay the loan at the end of the term. If you’re planning to sell your property, make sure the term of the loan gives you sufficient time to find a buyer and for the sale to complete if you plan to refinance onto a longer-term loan.
KEEPING YOU IN THE KNOW
The bridging market is very competitive, and this is leading to a reduction in interest rates. Rates start from as little as 0.49% per month up to 75% LTV, so bridging finance has never been cheaper.
Bridging loans can be used to purchase properties that would be ineligible for funding using other types of borrowing, such as property that is not habitable.
Bridging loans can be more expensive than traditional mortgages. Although rates are dropping, traditional mortgages are still by far the most economical option for most property transactions. Remember, bridging is short-term compared with long-term for mortgages.
FIND OUT IF THIS IS THE OPTION FOR YOU
GMS Capital Group Ltd is dedicated to ensuring you have the right finance option for your situation. To ensure you get it right, work with our team who can discuss the various solutions and their terms. Fill in the form below, and we'll get back to you.