Do you need short-term finance for an auction purchase or for development funding?
Birmingham Money prides itself on our ability to source the best Bridge Finance deals and works with lenders that offer fast and flexible bridging loans of up to 75% of a property’s value.
Bridging loans are a type of alternative finance that provides property investors with fast and flexible finance for their property investments. These short-term loans help to:
- Secure an asset whilst arrangements are made for a longer-term financial solution
- Planning a quick turnaround on a renovation project
- Buy property at auctions
Most of the time they use some form of collateral as security, such as real estate or stock inventory. The lengths of the loan range from 3 to 24 months and you need an exit strategy to clear the loan at the end of the term.
Frequently Asked Questions
Why use a Bridging Loan?
The Bridging lenders we work with can move far more quickly than a bank when a borrower needs funds to buy a property. Generally, they only need a few days to complete a deal and send the funds required.
In comparison, approval for a mortgage can take 30-45 days on average, sometimes longer in complex circumstances.
This potentially places a great deal of stress on auction buyers, who usually only have only 28 days to pay for any purchases in full.
Another potential benefit is the flexibility available when repaying the loan – most companies offer “serviced” repayments. This is where the borrower pays monthly interest. “Rolled up” repayments are when you delay payment until the end of the term.
Many bridging lenders allow for a mixture of both forms of repayment.
What can you use a Bridging Loan for?
Most Bridging Loans are used for residential or commercial purposes.
Here are a few situations where people could use a Bridging Loan:
- Buying a property at auction
- Purchasing a property whilst selling another
- Adding to a property portfolio
- Buying a run-down property for renovation with a quick sale in mind
- Moving office / factory / warehouse
Using Bridging Loans gives a clear advantage in certain circumstances – they are flexible enough to adapt to almost any situation where short-term finance is needed.
NB – it is important to have a clear exit strategy in mind or one already in place.
Benefits of Working with Birmingham Money
Specialist in Birmingham and the Midlands
We have offices located in Birmingham, so we are ideally located to help self-employed people looking for a mortgage or to re-mortgage in Birmingham, and the surrounding areas of Birmingham, including West Bromwich, Wolverhampton, Worcester and Coventry.
Don’t pass leads to another broker
All mortgage applications are handled locally by our dedicated team of Mortgage Advisors at our Birmingham Office.
Personal Service
Our experts take the time to understand the complexity of your mortgage needs and income streams. We're with you every step of the way to help you get the right self-employed mortgage.
Dedicated point of contact
With Birmingham Money you have a dedicated point of contact who will manage your application from start to finish saving you time.
Face to face meetings
Taking on a mortgage is most likely the biggest financial commitment you will make, so unlike other mortgage brokers we are always available to meet in person face to face and update you on your mortgage application.