The bridging market has been going through a boom over the past 12 months providing available cash to home-movers and property investors. Essentially a bridge is similar to a mortgage albeit the funds borrowed are for a shorter term, typically 1 to 12 months.
The repayments can either be made or added to the final debt at the end. In order to secure bridging finance, there needs to be a clear repayment strategy, such as a property being sold or refinanced to a standard mortgage. When you need to make something happen quickly bridging has become more of an option as funds can be available in days and rates have dramatically increased due to the number of new entrants into the market.
Rates are starting at 0.49% a month for funds, although there are other costs to take into consideration such as arrangement, legal, and valuation fees. The bridging market has matured and is helping many people get to where they want to go!
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