The Danger of Wasting Time
One of the greatest benefits of bridging loans is the speed with which they can be arranged. Bridging finance is most useful for properties purchased at auction requiring finance within 28 days, or for quickly securing a buy to let property for a good price.
However, we sometimes find that customers come to us in a panic after trying to secure finance elsewhere first. Optimism is a good thing in life, but trying to secure a mortgage for a property bought at auction or to secure a development property ineligible for a conventional loan means that investors are often left high and dry. More importantly, staking all your hopes on a buy-to-let mortgage can leave you seriously out of pocket. If you’ve got to the stage where you have invested in valuation fees, legal costs and surveyors fees, or even gone so far as to exchange contracts for a property that doesn’t have a kitchen and bathroom, then you’ll have wasted thousands to find out that the deal can’t even go through.
As a result, we recommend considering bridging finance from day one. Rates are low in comparison to historic bridging finance interest costs, and you won’t be risking losing out on a property or breaking a buying chain. You could also be saving yourself thousands of pounds in wasted costs. So don’t let a lack of finance hold you back; seek advice from us before you go any further.