The circumstances that bridging finance may help with include emergency funding to meet a deadline, as an alternative where no other finance is available, prevention of credit defaults, credit repair and finally capital raising for any legal purpose. Bridging Loans therefore have their uses for home movers, Buy to Let investors, property traders, property developers and businesses or individuals that just need to raise money quickly!
When to utilise a Bridging Loan
- Buying a property to renovate or refurbish prior to selling.
- To buy property to renovate or refurbish prior to re-mortgaging via a buy-to-let mortgage, a useful option for those seeking to build a portfolio.
- To purchase a site that requires major development and draw-down cash at various stages of the build by extending the bridging loan.
- To complete an auction purchase, remember to avoid losing your deposit, you must complete within the specified time period, usually 28 days, but sometimes it can be as little as 14 days!
- To purchase a property currently unfit for mortgage purposes pending correction of major defects, for example the property may be derelict or subject to mortgage retention.
- To purchase a property and negotiate discount over and above the cost of a bridging loan by being able to complete the transaction very quickly.
- To raise cash for unexpected bills such as PAYE or VAT.
- To raise capital to invest in other property at home or abroad.
- To settle or prevent CCJ's, bankruptcy or having your property repossessed.
From the applications listed above you can see that Short Term Bridging Loans are highly suitable to many circumstances and in many cases may be the only finance solution.
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Source: http://www.articlealley.com/article_517861_19.html
Source: http://www.articlealley.com/article_517861_19.html
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