Bridging loans are fast becoming mainstream these days. What used to be considered a niche loan is gaining more popularity in recent years thanks to the fact that more people have come to realise all the many benefits that it can bring about especially if they are involved in property investments.

Bridging loans are considered to be short-term solutions for financing problems. It is possible to take this loan to finance a property purchase especially if the goal is to get proper financial cover for the period prior to a mortgage that is meant to get paid off for the long term.  Some people might get scared at the idea of having to take out a loan that needs to be paid within a period of twelve months only, especially one that is meant to pay for a property purchase. However, this should not scare people off especially since this means is that you are only taking a loan that would normally not be available if you are going to take advantage of it through traditional lending channels.
Consumers are especially interested in this type of loan due to how it allows them to secure a new house even before they can complete the sale of their old property. It is also quite common to use this type of loan today in order to win a bidding war. There are property owners that take advantage of property auctions as it allows them to secure a property fast and often, at a very competitive rate too. However, properties bought from an auction need to get the entire purchase completed within a short period of time. Since it is usually impossible for buyers to have pockets enough to pay for the costs, they take advantage of a loan.
Still, getting financing through traditional means would require a long time. Property auctions require the amount to be paid within 28 days only. This is where people turn to bridging finance to get the funds that they need. Bridging loans are a lot faster to process and the requirements tend to be less challenging when compared to what traditional lenders require.
When applying be aware that the industry has essentially skyrocketed over the years, thanks to the increase in the instances of auction house buys. This means that due diligence is needed in order for you to find the right lender. Not every single one of them is going to be the same so it is up to you to find one that is credible, reliable, and trustworthy at the same time.
The best and fastest way for a bridging loan to get approved is to make sure that you have some sort of security to use as a leverage for the loan. Your credit history can also factor in on whether your loan is going to be approved fast or not. A good credit history would mean faster approval. So, keeping a good financial record can truly benefit you in the process. Do compare your choices before you make a choice.
Watch the video below to learn more.

Learn more about how you can get your bridging loan application approved faster by reading about Richard Butler Creagh online. You can also connect with Richard Butler Creagh on LinkedIn here.
Posted: 03/04/2018 15:21:36 by Richard Butler-Creagh | with 1 comments


As a loan form, bridging finance has become quite the source of funds today as far as many investors are concerned. Considering the approval of the item will likely mean you meeting all the necessary requirements set by the lender, it helps massively if you are well aware of the requirements that you are supposed to meet first.

Purchasing a property while waiting for an existing property to get sold

This is often the topmost reason why people will take advantage of a bridging finance. Being in a house chain is no fun experience at all. A lot of people these days have dealt with a situation where they have to delay their decision to buy a hose that they are interested in because they are still waiting for their present property to sell. Bridging loans are most useful in this instance since it is going to be the one used to complete the purchase.
Buying at a property auction

When you bid at a property auction and you succeeded you will be required to pay the 10% deposit right after the event. Then, you will also be given 28 days to pay the rest of their winning bid amount in order for the same to be completed. Bridging finance is more ideal for these situations since it teaks a lot less time to process and to get approval compared to the usual means of getting finance.
Developing a property
There are times when you may be interested to buy a property that appears to be derelict. Most mortgage providers are likely going to turn down an application of this nature due to the sorry state of the property involved. Not bridging lenders though. You can trust that your side is going to be aired by the lender which means that you get a better chance of getting approved for a loan if you will g #o the bridging route.
Working capital for the short-term

There are a lot of times when businesses may require some form of cash injection. This type of loan can be used for this purpose too. The flexibility of the loan also means that its use is no longer just limited to anything related to property.
Buying a land before securing a permit for the planning

If you are going to for a long-term loan when buying a land, then be aware that its approval can often be dependent on getting the planning permission. This is not something that is required by bridging lenders through. Just as long as the developer or the property investor can be sure that the planning permission is going to be granted, it is possible to use the funds from the bridging finance to pay for the purchase.
When you are refused credit

Borrowers that are unable to get approved for a standard loan due to poor credit records can always rely on bridging loan providers to assist them. Just be aware that regardless of the reasons behind the interest in borrowing money, a property security is always required for the loan before it will get approved.

Watch the video below to learn more.

Learn more about the many ways that a bridging loan can assist you these days by reading about Richard Butler Creagh online. You can also follow Richard Butler Creagh on Google plus here.
Posted: 03/04/2018 15:06:49 by Richard Butler-Creagh | with 1 comments


The fact that the property market seems to be changing, almost on a daily basis, means that it can be tough sometimes, for landlords to find the right financing option when it comes to quickly acquiring a property.
This is especially true if one is interested to buy property at an auction. Considering the fast pace in which things go on in these transactions, one will need to have the necessary funds to commit to a property purchase the moment the hammer falls and he is named the winning bidder. Property auctions require the winner to pay the full amount for a limited time only. This is why any interested property investor needs to get his source of fund ready before taking part in an auction.
In order to reap the benefits out of buying a property at an auction, a buyer will first need quick access to cash. Traditional lenders are often unable to dispense the specific amount needed to complete the transaction especially since they require processes that takes considerably longer than the usual 28 days that property auction purchases are expected to be completed.
This is where specialist financing providers that offer such loans as bridging finance come in. The loan is typically payable within 3 to 12 months. During this time, it is possible for the borrower to get the property refurbished and prepared for sale or for rent. This should also give him enough time to look for a financing that is suited for a longer term as in the case of a commercial mortgage or a buy-to-let mortgage so he can pay off the bridging loan.
Bridging loans are also flexible. This means that their use is not just limited to property purchases. They can also be used to finance purchases of semi-commercial properties, retail outlets, offices, warehouses, industrial units, and even offices.
Bridging lenders usually will look at the business plan of the borrower to assess the property involved and to check how viable it is. They will often meet with the borrower to get a better understanding of the project. The loan is then structured in order to fit the needs of the borrower especially when it comes to the roll-up of the interest and the manner in which the funds are going to be released.
It is important to remember though that when taking advantage of a bridging loan, the moment that the agreed term ends, then there is a need for the borrower to get the balance paid as well as whatever accrued interest there is, referred to as the exit, lenders and borrowers need to know the specific lump sum that needs to be paid off. It is important then for every interested party who wants to take advantage of bridging finance to plan a good exit strategy. Selling the property involved to pay off the loan is a good one.

Watch the video below to learn more.

When taking advantage of a bridging loan, choosing the right lender is important. One who has been in the industry for a long time, who has developed a good reputation, and has been getting some very good feedback from past clients would make a good choice. Learn more about how you can make the most out of bridging loans by reading about Richard Butler Creagh online. You can also follow Richard Butler Creagh on Twitter here.
Posted: 03/04/2018 14:53:22 by Richard Butler-Creagh | with 3 comments


Bridging loans are short-term loans, usually high-interest ones too, that can be used to get access to funds quickly. Most clients that take out this type of loan often have a need to get their hands on funds quite quickly. It is most useful for people involved in real estate especially in instances when they may need some funds to complete the purchase of a real estate and other property. Below are some tips that you should remember if you are considering the possibility of taking advantage of a bridging loan.
Know the costs involved

While it may sound simple, always make sure to be clear when it comes to the full amount of the loan and the specific portion of that amount that will have to go to interest rates and fees. It is also important to remember that the short-term loan is attached to high fees and interest rates. Among the fees that you are likely going to need to cover when taking advantage of this loan include the facility fee, the exit or prepayment fee, valuation fee, the legal fees, legal fees for the lender along with disbursements, fees for the broker, as well as bank transfer fees.
Find out about the security that is being given too

One of the most common conditions that you as a borrower will be asked for when getting the loan is to provide a certain security or leverage to the lender. This usually comes in the form of a charge against the property involved. There are also other types of security that can be used for this purpose. Make it a point to comply with the conditions attached to the loan though to make sure that there will b no unnecessary legal implications as a result.
Know about the pre-loan requirement

If you want to get a much better chance at getting approved for the loan, then be sure to know about the pre-loan requirements first. Different loan providers have their own different standards as far as pre-loan enquiries are involved. Do due diligence to make sure that you have all the documents needed. Be aware that the costs are likely going to be yours to shoulder so, be prepared for that. Make sure to provide the lender with the necessary explanation too on how you are going to fully repay the amount that you are borrowing. Ensure that you will have sufficient funds that should help you do this.
Timing is important too

While it is known for loans like these to be expedited at a much faster rate, they may take longer than what you expected if you are unable to do things the right way. This is also why it is highly suggested that you should find the right solicitor to guide you along the way, one who knows all the legalities involved and one who has been processing these kinds of loans before will be able to extend to you some very effective practical tips to speed up your application.

Watch the video below to learn more.

Learn about bridging finance and how it can benefit you by reading about Richard Butler Creagh online. You can also check Richard Butler Creagh on Crunchbase here.
Posted: 03/04/2018 14:32:51 by Richard Butler-Creagh | with 1 comments