FINANCE SOLUTIONS
Property bridging loans, commonly referred to as bridging finance, are short-term loans designed to bridge the gap between the purchase of a new property and the sale of an existing one. These loans are particularly useful for property buyers who need quick access to funds to secure a new property before their existing one is sold.
Bridging finance for property development can be secured from £100k to £1M. If the question is how much you can borrow, it will depend on the property's value. Indeed, Kinetic Finance will help you evaluate the property. Property value refers to the amount of equity you have in the property and your loan-to-value (LTV) ratio. Your ability to repay the loan is also one of the deciding factors when it comes to bridging finance for property.
1. Purchasing a new property before selling an existing one.
2. Funding property renovations or developments.
3. Raising capital quickly for investment opportunities.
4. Covering unexpected costs related to property transactions.
Bridging loans bridge the gap while the organisation or the individual is trying to secure a permanent financing solution. These loans offer immediate cash flow to meet current obligations, while borrowers wait to get access to a larger fund.
Bridging loans bridge the gap while the organisation or the individual is trying to secure a permanent financing solution. These loans offer immediate cash flow to meet current obligations, while borrowers wait to get access to a larger fund.
Property bridging loan interest rates are typically between 1.5% and 2% per month. However, the exact interest rate you get will depend on the type of property you are buying, your exit strategy, how quickly you need the capital, your loan to value (LTV),and the bridging loan provider you opt for.
Property bridging loans are typically secured against the asset being purchased or renovated. In the buy-to-let market, this means a property that you are purchasing, renovating, or securing at auction, will be used as the collateral. Bridge loans are not directly linked to the borrower’s income. To repay the loan, the borrower would need to sell the property, sell another property or asset, or raise long-term finance to pay it back. So, when taking out a bridge loan, do ask for an exit plan.
Property bridging loans are typically secured against the asset being purchased or renovated. In the buy-to-let market, this means a property that you are purchasing, renovating, or securing at auction, will be used as the collateral. Bridge loans are not directly linked to the borrower’s income. To repay the loan, the borrower would need to sell the property, sell another property or asset, or raise long-term finance to pay it back. So, when taking out a bridge loan, do ask for an exit plan.
To apply for a Business Bridging Loan with Kinetic Finance, follow and complete the following steps.
After the legal process is completed, Kinetic Finance will disburse the loan amount. This is done by paying off the existing mortgage on the property being sold and providing the remaining funds for the purchase of the new property. Finally, you need to repay the loan according to the agreed-upon timeframe. Bridging loans are usually short-term loans, and repayment is often expected when the sale of the old property is finalised.
If you are looking forward to taking a property bridging loan with Kinetic Finance then visit our contact us page and apply now and to get information about property bridging loan process, interest rates, terms, and eligibility.
Kinetic Finance do have specific requirements related to income, credit history, and the property being used as collateral.
You need to prepare certain common documents required for a property bridging loan application. This may include proof of income, credit history, sales agreement, property valuation, and details about the property being sold and the one being purchased.
After completing the application process, ensure that all required information is accurate and updated. Kinetic Finance may conduct a valuation of both the property being sold and the one being purchased. This is to determine the loan amount they can offer based on the actual value of the properties.
Once you have submitted your application and all required documents, Kinetic Finance will review your application. This may involve a credit check and a detailed assessment of your financial situation.
If your application is approved, Kinetic Finance will provide you with a loan offer. The terms and conditions of the bridging loan, including the interest rate, loan amount, and repayment schedule will be given.
You can apply for a self-employed bridging loan as an individual or a company. You can be a sole trader, in a partnership, or a limited company director. However, Kinetic Finance will need to see proof of your financial status.
You can borrow up to £1m with bridging finance, but it is typically capped at about 70% of the value of the property you are using as security..
The average bridging loan has a duration of 12 months.
Getting a bridging loan can take between 72 hours and two weeks to complete. Some bridging loans can be arranged in just 24 hours. Please note that having the necessary paperwork and using an experienced solicitor could help you get a bridging loan faster.
Property developers apply for a bridging loan with a bridging loan lender. The bridging loan lender can compare lending options, providing all necessary details, such as the scale and feasibility of the project, capital, and information about the property(s) being developed.
