A bridging loan is a type of short-term finance that typically lasts for 12 months or less. It provides fast and flexible funding for all kinds of purposes and is used by individuals, investors, businesses and property developers
What are bridging loans used for? Bridging finance was traditionally used to ‘bridge’ gaps in property chains, but today it is more widely used. Homebuyers, property developers, landlords, investors, and self-build enthusiasts all use it to complete projects, including initial purchases.
How is a bridging loan different from a regular loan? For example, you can take a bridging loan out in multiple stages so that you only pay interest on the money that has been released to you, and if you prefer not to make monthly interest payments, there is also the option to retain your interest (and not just your fees) from.
A building, Refurbishment and Extension Projects. Bridging finance can also be used to fund building, refurbishment and extension projects. For example on your property development, you can turn an existing commercial building into flats with the assistance of permitted development rights. For self-builds, you can create your ideal home or even a grand design. Lastly with extensions, with planning permission available you could create that perfect living space.
Financing Projects. Investors, businesses and entrepreneurs also take advantage of bridging loans to invest in projects overseas, purchase assets, increase business cash flow and make tax payments, such as income, capital gains, corporation, VAT and PAYE.
Richard Butler Creagh is the founder of bridging finance company Henley Finance, dedicated to helping property developer with fast loans. To find out more visit the Richard Butler Creagh website here. More advice on bridging loans can be found at Richard Butler Creagh Facebook here. Join Richard Butler Creagh professional network by on Linkedin page here.