Are you looking for short-term finance to bridge the gap between buying a new property and selling your current one? At Willow Brook Private Finance we specialise in bridging finance. Whether you are looking to move properties quickly, finance a property that needs renovating or developing or looking to buy a property not currently habitable, we can find the solution for you.
Bridging finance is a short-term loan designed to "bridge" the gap between the purchase of a new property and the sale of an existing property. It provides borrowers with the flexibility and liquidity needed to secure their dream property without the delays associated with traditional mortgage financing.
Bridging finance is traditionally known as being used to purchase a property that needs renovating or when you want to move quickly or before your current property sells. There are actually a lot more scenarios where bridging finance is your best option and we can help you to utilise this short term finance to make the property viable.
A closed bridge loan has a fixed repayment date, typically when the sale of your existing property is expected to complete. It's ideal for borrowers with a clear exit strategy and a defined timeline for repayment.
An open bridge loan has no fixed repayment date, providing flexibility for borrowers who may encounter delays in selling their property. It allows you to access funds quickly while you finalise the sale of your existing property.
If you're a property developer or investor, our development finance solutions offer short-term funding for property development projects, including ground-up construction, refurbishments, and conversions.
There are lenders available that will do automatic valuations and offer 24/48 hour turnaround. Perfect for that auction property, chain break or to save a property being repossessed.
Whether you're buying a residential property, investing in commercial buildings, buying a property to refurbishing or changing the use of a property; bridging finance offers flexible financing options to suit your needs and objectives.
At WB Private Finance, we understand that every borrower's situation is different. That's why we offer bespoke bridging finance solutions tailored to your specific requirements, whether you need short-term finance for a few weeks or several months.
You will require 25% deposit with most lenders for a bridging loan. There are some lenders who will allow 20% deposit but this will limit your lenders available and so everything else will need to meet their criteria.
There are some lenders available who will also look at the gross development value which is the value of the property once the work has been carried out. For example if you purchase a property for £500,000 and plan to fully renovate the property and it will then be worth £1mil, they can consider lending against the £1mil value for the funds to carry out the work on the property.
Bridging loans are designed to be a quick short term finance solutions. The timeframe will vary on whether there are any other charges on the property, the valuation and the complexity of the circumstances.
There are bridging loans available that can be agreed in 24-48 hours if a automatic valuation can be carried out and the terms are simple.
The interest rate quotes for bridging loans is a monthly amount, due to them usually being used more short term. Interest rates start from 0.555 Per month (correct as of august 2024). A lot of lenders will allow you to roll the monthly payments in to the bridging loan if you cannot or do not want to pay these monthly.
Contact WB Private Finance today to speak with one of our bridging finance specialists and explore your options. Let us help you navigate the world of short-term financing and achieve your property goals with confidence.