September 2014 - First 4 Commercial
17Sep2014

Common Bridging Finance Questions

Common Bridging Finance Questions

Applying for a mortgage is a slow moving process, subject to certain rules on property condition and forcing applicants through a lot of hoops. Opting for bridging finance on the other hand, can help you secure properties quickly, buy at auction, or invest in refurbishment or renovation work.

However, most people have a lot of questions surrounding bridging finance, so we’ve put together a guide to three of the most common.

Can I apply for bridging finance if I am over 65 and retired?

Absolutely you can, yes, as long as you have assets to back your loan. Interest on bridging loans is higher, but these are short term loans designed to plug gaps in finance. So age is irrelevant, provided the applicant has sufficient assets to successfully exit the loan, normally within a year of borrowing.

Can I apply for bridging finance to fund a deposit on my first property?

Unfortunately, bridging finance is only for those with existing property to back the loan. A personal loan is a better option for funding a deposit if you do not currently own a home. Contact us to apply for unsecured personal loans up to £25,000.

I am not interested in property – I need finance to support my business. Can I use bridging finance?

Yes, bridging finance is available to support businesses. We can offer asset finance for growing a business, invoice factoring finance for increasing cash flow, or leasing options for help with capital expenditure.

For more help and useful information go to www.first4commercial.com

first4commercial.com

f4c

T: 01277 620083 F: 01277 658900 E: info@first4commercial.com

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

3Sep2014

The benefits of Bridging

The Benefits of Bridging in the UK Housing Market

A growing population, a squeeze on mortgages and a lack of housing are forcing ever more people to reconsider their housing options. As a result, investors, borrowers and landlords are competing over ever fewer properties. House prices are still rising, and Buy to Let lending has soared, as more and more property investors seek to capitalise on ever rising prices. Yet the lack of new home building means that properties ripe for conversion or refurbishment are also being seen as good opportunities for investment.

As bridging loans are not subject to habitability criteria imposed by mortgage lenders, then a bridging loan is ideal for conversion and refurbishment opportunities. This could range from either converting single dwellings into flats, changing retail space to residential, or developing a run- down and abandoned building. Either way, bridging finance makes development for profit possible. Provided the lender finds the exit route viable, then once works are completed the bridging loan can be repaid either by selling the property or by refinancing. If you plan to buy at auction, you’ll need the funds in place prior to bidding. Alternatively, bridging finance can be used to plug the gap between the sale of an existing property and a new one.

Contact us for help with finance for development, renovation or conversion work, through our bridging finance options. Finally, remember that some initial refurbishment or development work is eligible for VAT relief or exemption – yet property tax law is complex so we recommend you seek independent advice.

For more help and useful information go to www.first4commercial.com

first4commercial.com

f4c

T: 01277 620083 F: 01277 658900 E: info@first4commercial.com

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

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