Residential Bridging Loan
A fast, short-term finance solution known as a residential bridging loan can help investors or homeowners in various situations.
Residential bridging loans don't refer to the purpose of the loan itself but instead to the type of property that is held as security. So in this instance, a residential property would secure the loan that you are applying for. The same would occur in commercial bridging loans where a commercial property would be used as security.
It is important to note that most lenders will be able to secure against a residential property, but fewer will accept commercial or mixed-use properties as security.
Why would you take out a residential bridging loan?
The most common reasons for residential bridging finance is usually:
- To extend a lease on a property before you sell
- To fund a refurbishment or extension of your property
- To buy a new property before selling your current property
- To raise funds for business opportunities
- To raise funds to pay off debt