If you need money fast, without many of the usual checks involved with applying for finance, you might wish to consider a Bridging Loan. These are loans which are designed for use over a short period of time, periods of a few months rather than years. The two main scenarios that we most often come across are as follows:
-A client has found a property which they wish to buy, but hasn’t yet sold their existing property, the money from which is needed for their onward purchase. In these cases, a bridging loan can be arranged quickly, which ensures they won’t lose their desired property. Once the existing property has been sold, the bridging loan is repaid.
-A client either owns a property or wants to purchase a property which is in a state of disrepair and which is therefore un-mortgageable. Bridging finance can be arranged quickly, in order to provide funds to refurbish the property. Once the property has been repaired, funds can be sought from mainstream lenders and the bridging loan can be paid off. Bridging loans are generally offered only by specialist lenders and our status as a Directly Authorised firm allows us to work with providers across the whole of the market. We are confident that we can source finance in this area in all conceivable circumstances.
There are lenders who will provide further loans to homeowners, at relatively competitive rates, as they will place a ‘second charge’ on the mortgaged property.
A second charge works in exactly the same way as a first charge, but the lender with the second charge has to allow the first charge lender to get paid first, before reclaiming their loan in the event of repossession. The risk, therefore, is increased for second charge lenders and this is reflected in the higher interest rates offered by them, as compared to mainstream first charge lenders.
Why A Second Charge Loan?
If you are an experienced property developer or just starting-out on your first project, make sure that you speak with us about development finance. We have lots of experience in this area and we have excellent relationships with the key players in this market. It is advisable that we work together from the very start of the project, so that we can advise on the process of arranging finance and the steps involved. However, we have also successfully arranged development finance for projects which have been part-completed.
We also arrange Development Exit loans which are designed to release funds from your completed project, so that you can move on to your next project swiftly.
Give us a call to discuss your plans and we will explain what level of funding you will be able to access as well as the method by which those monies will be released.
Talk to the team
Have a question or query, get in touch with our team today.
About Clifford Davis
Clifford Davis is a premier provider of property-related financial advice. Based in Barnet, North London, we pride ourselves on being able to advise and to provide guidance in all areas of property-related finance.