Bridging Loans are a funding option that can be used in the short term to ‘bridge’ a gap between a debt being due and a line of credit coming in. They are usually loans that have duration of 12 months or less.
A bridging loan is most commonly used by both individuals and businesses for commercial and / or residential property transactions. Whether it be for the purchase of a property, building a new property, or refurbing a property, bridging finance is a great, flexible option to use. You may see the term Bridging Mortgage and this also relates to this type of thing.
Another reason that bridging finance is used is for businesses that might require some short term funding. Sometimes a business needs to raise capital, meet a business obligation, or perhaps even settle a tax liability, and again, a bridging loan is a great way to help out in the short term.
The biggest key difference between a regular loan and a bridging loan is that where a normal loan can take anything up to a few months for a regular lender to complete checks and make an offer, a bridging loan can be drawn up and offered within days which saves a lot of time and hassle overall.
If you are looking for a bridging loan and want to make a start on looking for one that is suitable for you then you can search for them online where you will be able to locate a bridging loan calculator that will provide you with a list of bridging loan rates once you have inputted all of the relevant details required to be able to tailor the quotes to your specific requirements. Once you have this list you will be able to work your way through them to understand exactly what they can offer you, what duration you can have them for, and all of the other bits and pieces that are important to you in order to find the right bridging finance option for you at that time. The bridging loan calculator will allow you to see how much you may need to borrow to stop you borrowing more than you actually need to.
So there you have some information on bridging loans and bridging finance that we hope you’ve found useful. For more information on this subject you can speak to local providers and / or take a look online where you will find a wealth of other information relating to it that can further help you when deciding whether it is the option you want to take for your finance requirements.
For a more specific look at a company that offers such products, take a look at http://www.target-mortgages.co.uk/