For more information on any of our services or for an accurate bridging loan quotation, reach out to a member of the Donkey Finance customer service team today.
A bridging loan is a type of short term loan which is used to bridge a financial gap people can experience when selling a house and buying a new house. They can also be used to buy property at an auction. Click on this link to view examples of bridging loans and the various scenarios they can be used.
Bridging loans can be used for a variety of different purposes, from paying off a tax bill and buying a second home either abroad or in the UK, to property development and buying land.
A closed bridging loan has a cut-off point where the loan must be repaid, whereas with an open bridging loan the borrower decides how much of the bridging loan to pay off and when to pay it off.
Bridging loans are the perfect way of bridging a gap in your finances, for example to fund the purchase of a property while waiting for your existing property to sell.
When compared to remortgaging a property or applying for a second mortgage the amount of time it takes to complete a bridging loan is short.
With a bridging loan you choose when to make the repayment, as long as the loan is repaid within twelve months.
Unlike the majority of banks, a bridging loan lender will provide loans to individuals to cover the cost of a tax bill, or to purchase a dilapidated property.
When applying for a bridging loan with us you will be receiving all the benefits a bridging loan offers with the peace of mind of borrowing from a lender who is regulated by the FCA.
Buy the house of your dreams even if your current property hasn’t sold yet.
Selling a property is hard, it can take years sometimes to find a buyer. If you have found a new house which you are wanting to move into, a bridging loan will allow you to do this, acting as a financial bridge until your property is eventually sold.
Bridging loans are a great way of funding a house refurbishment, allowing you to purchase a property, add value, and sell it for a profit. These loans can also be used to buy a property which has planning permission, knock it down, and rebuild it.