A bridging loan is a loan that is secured against a property. It can be used to fund a project, as a stop gap while waiting for a large payment, a means of investment or for a swift cash injection.
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If you have enough capital available, the opportunity to invest some of your money up as a creditor for a bridging loan can be lucrative.
The short-term nature of the loans from the company make this an attractive prospect for investors; cash is only lent out for up to 12 months maximum so the return on your investment is seen within a year.
Money is lent for up to 70% of the value of the borrower’s property and the high rates of interest will help you to make a strong return on your investment.
In addition, your money is guaranteed if there are any problems with repayment. Should the borrower default, as the financer of a bridging loan you will be first in line to get your money back – before mortgage lenders, banks or any other creditors.
A bridging loan allows you to get hold of money, against the value of your property, quickly. These loans are for up to 12 months and can be beneficial for both the lender and the borrower. Loans can be taken out for up to 70% of the value of the property for up to a year.
You may want to bridge the financial gap between buying a new house and selling an old one, quickly paying off a bill or even just getting a new car to get to work.
To make the process as quick as possible we use a ‘90 day valuation’ system, whereby the property used as collateral is valued at the price it would sell at within 90 days.
Once the valuation is complete the loan is then approved. This usually happens within 5-7 days, which is far quicker than a high street bank.
At Lifestyle Property we have an option to help you with both of these issues.