Bridging Finance
Need funds to fill the gap between the buying and selling of properties? Bridging finance can help.
Generally, most people sell their original property first, then purchase their new property. But sometimes life doesn’t work that way. Bridging finance covers the gap between the purchase of the new property and the settlement of the old. Bridging finance may be the funding solution for your needs.
Timing isn’t always perfect in the property market. Opportunities can come up quickly and require you to act with urgency, our bridging loans can help you take advantage of those opportunities as they arise.
Talk to our specialist team today to organise bridging finance to meet your needs.
Bridge funding is an interest-only loan with a short, limited loan term. The interest can be capitalised, giving you some financial breathing space while you wait for the sale of your property. There is also the possibility that you can borrow up to 100% of the purchase price of the new property.
Bridging finance works for you to maintain your obligations during the period between the purchase and sale of a property. A bridging loan could mean you can avoid having to move into a rental property to cover the timing difference. It means you don’t have to worry about finding the new property in a hurry, allowing you to time the market to your advantage.
Quality bridge loans give you the opportunity to take advantage of a rising market, allowing you to get more bang for your buck on your purchase and making more from your sale. When the current property sells, the bridge loan is either paid out in full or converts to a regular commercial loan facility with a longer term.
We can help you calculate and plan your bridging finance arrangement for the best solution for YOUR situation.
Don’t be afraid to chase your dreams; let us find the solution to fund your project so you can make your mark!
Bridge Finance FAQs
What is short term bridging finance?
Bridging finance is an interest-only loan with a short, limited loan term, designed to give the borrower some financial breathing space while waiting for the sale of one property and the purchase of another.
How long is a bridge loan good for?
A bridge loan is set to meet the needs of the borrower and the expected settlement dates of the properties involved. Generally, a bridge loan is good for up to 12 months, but this will be assessed on a case by case basis.
Do banks give bridging loans?
Bridging loans can be obtained through private lenders, and traditional sources of funding, like a bank or building society.
How does a bridge loan work?
A bridge loan fills a funding gap between the sale of one property and the purchase of another. A bridge loan is an interest-only loan with a short, limited loan term. The interest can be capitalised, giving you some financial breathing space while you wait for the sale of your property. There is also the possibility that you can borrow up to 100% of the purchase price of the new property.
How much deposit do I need for a bridging loan?
This will depend on the amount you need to borrow and the value of each of the properties you are bridging between. Other factors may also be taken into account such as the expected term of the loan and the repayment capability of the borrower.
Are bridge loans good?
Bridge loans are useful for meeting a funding gap between the sale of one property and the purchase of another.
Why Choose IBN?
At IBN, we work closely with our panel of Funders, to move quickly on your loan application. We understand that ‘time is money’ and we make the loan process as seamless as possible. Our experienced staff assist you every step of the way with frequent communication on the loan progress.
We present options that others didn’t know existed
We search for solutions and enjoy the challenge of complex loans
We understand the complexities and requirements for a commercial loan application.
We explain our cost-structure from the outset so that you know what to expect.