A bridging loan is a great solution for clients that need quick access to capital. It is a short-term interest-only loan to ‘bridge’ the gap – or in other words provide some breathing space for a property transaction, auction purchase, renovation, or simply injecting some much needed capital within a business.
Although commonly used to purchase residential or commercial property, there are other things that bridging loans can be used for.
Bridging loans are more popular than ever and are proven to have shown resilience in the most uncertain of times.
Conventional mortgages are subject to an increasing amount of red tape. As such, a loan application with a high street lender can take months to arrange.
And that is assuming they will lend in the first instance because securing a loan has become more and more difficult too. Lending criteria for mainstream mortgages are now far more stringent and anything from a poor credit history through to a borrower’s age can make it tougher to borrow.
Yet a bridging loan can usually be completed in a matter of days. This makes it an excellent option for those who need quick access to capital, or need to buy some time – perhaps while other lending is arranged or sale waiting to complete.
With an Aura Finance bridging loan, we offer a tailored lending solutions based not only on the value of the asset but on your individual circumstance and requirements.