A bridging loan offers a short-term solution in situations where a secured loan is required quickly or where the property is not currently mortgage able.
It must be remembered that a bridging loan is a short term solution and should only be utilised to inject speed into a transaction or while a property is readied for disposal or refinancing. Any short-term lender will want to ensure that a clear exit strategy is in place and in many cases will stress test its viability.
Over the last few years there has been an explosion in the number of lender participants filling the void left by the retail banking sector who have found themselves unable or unwilling to advance loans for this purpose. Greater competition has squeezed product pricing to the lowest levels ever seen, in some cases annualised interest rates are on a par with some buy-to-let mortgage products.
At Zuplex we are able to arrange bridging loans secured against various types of residential and commercial property assets including development plots and land. We also regularly assist clients who wish to purchase a new property prior to selling their existing home.