Historically, “Bridging” or short term finance was on the margins of secured lending and to some extent had a bit of a bad name.
Journalists would say that the bridging lenders were taking advantage of customers with the interest rates they charge.
Using bridging finance to allow you to complete a purchase on a residential house while you await funds from the sale of an existing home is going to seem expensive! That’s why, as a company, Enhanced Wealth Ltd does not arrange this type of funding. Sorry!
However, where bridging funding works amazingly well, is where commerciality comes into the picture and the return on investment far outweighs the cost of borrowing………then it’s a sound option.
During the credit crunch, when the Banks pulled the finance lines of the small developer completely, the bridging funders stood firm and developed products to help them make some money. So, post credit crunch, what we are left with is a vibrant, innovative market for short term funding, where almost anything is possible.
Bridging Finance can be used in so many different ways, to achieve so many different objectives. Here are some examples of what is possible:
- Purchase of an uninhabitable property for a light or heavy refurbishment, which is not suitable for a standard buy to let or commercial mortgage at outset
- Develop a derelict Barn, with full residential planning permission to convert into a house, to be sold, or retained as a buy to let investment property
- Purchase of an investment property that is inhabitable, but could not be considered suitable for letting, because works are needed
- Property purchase at a genuine discounted price with the loan based on market value, not purchase price*
* There must be a genuine reason, such as a distressed sale, sitting tenant/tenant purchase
To discuss your bridging finance requirements please call us on 0800 316 5756
Please note that the Financial Conduct Authority do not regulate commercial loans or commercial mortgages