Why a Bridging Loan
A bridging loan is a great solution for clients that need quick access to capital. It is a short-term interest-only loan to ‘bridge’ the gap – or in other words provide some breathing space – while other finance is secured.
Although commonly used to purchase residential or commercial property, there are other things that bridging loans can be used for.
Bridging loans are more popular than ever
Conventional loans (such as mortgages) are subject to an increasing amount of red tape. As such, a loan application with a high street lender can take months to arrange.
And that is assuming they will lend in the first instance because securing a loan has become more and more difficult too. The rules are now far more stringent and anything from a poor credit history through to a borrowers’s age can make it tougher to borrow.
Yet a bridging loan can usually be completed in a matter of days. This makes it an excellent option for those who need quick access to capital, or need to buy some time – perhaps while other lending is arranged (or a property is developed).
With a West One bridging loan, lending criteria is based on the actual value of the property – not the applicant’s ability to make monthly repayments. Our bridging loans are not just limited to property purchases either.