Bridging Loans London
Who are bridging loans London aimed at? Bridging loans London are open to anyone with a need of one, but they are aimed at one sector in particular; developers. Developers will often buy a property at auction as this is the quickest, cheapest way to obtain a house or apartment building. However, the very fact that these places have gone to auction usually (although not always – there can be other factors involved) can’t obtain a traditional mortgage against them. They might be in a state of disrepair, for example, and a lender would be concerned that, should the need arise, they wouldn’t make their money back on the property.
Yet a develop may not have the cash in their pocket to buy the property outright.
This is where a bridging loan will come in useful. This loan should be enough to purchase the property and allow the developer time to do it up, make in habitable, and make it ready to put on the market to sell it completely. At that time, should they need to, a traditional, longer term mortgage loan should be more easily obtainable. The bridging loan will be paid off within the shorter timeframe, and the developer can concentrate on whatever outcome they want from the property they purchased in the first place.
It’s not just developers who can benefit from a bridging loan, of course. Landlords who are in a similar situation (looking to buy a property, do it up, and then rent it out) can use bridging loans if, as above, a traditional mortgage isn’t possible at the start.
Individuals have started to be interested in using bridging loans London as well; the traditional mortgage application process is a long one, and when the housing market is moving quickly, or they have a need to move quickly themselves, a bridging loan can often be a faster option – they obtain this loan whilst also applying for a standard mortgage, enabling the house buying process to be swifter, and the bridging loan to be paid off very quickly indeed. Remember, though, there are a number of specific terms and conditions associated with a bridging loan, and it is a good idea to speak to an expert about what you are doing before agreeing to anything.