Interested in a Bridging Loan?
Posted on July 21st 2021
Bridging Loans are becoming an increasingly popular choice for both individuals and companies that need a short-term secured loan. As their name suggests, they are used to ‘bridge the gap’ in funding.
What is a bridging loan?
A bridging loan is an alternative method of funding to conventional bank finance. They tend to be used when people need quick access to funds for a short period of time. Repayment of the loan is usually expected within 12 months, but this can vary depending on the lender and the terms of your loan. As a result, lenders charge a much higher interest rate than on your standard mortgage so it is important you have a plan to repay the loan as quickly as possible.
Uses of bridging loans
These loans are used by both individuals and companies for a range of purposes, such as:
- Buying a property at an auction
- Buying a house before the sale of your old house has completed
- Property development and refurbishment
How can Oliver & Co help?
Our specialist solicitors at Oliver & Co have years of experience assisting both borrowers and lenders with bridging loans. As these loans are used when a borrower needs access to funds quickly, it is important that your solicitor is experienced in this area of law.
We will provide your lender with the necessary information to satisfy their requirements and advise you on the documentation. We will ask you at the outset of the transaction when you require the loan monies and work efficiently to meet your needs.
As with all financial decisions, you must only proceed on the advice of your financial advisor. Oliver & Co are unable to provide financial advice but we can assist with the legal process of completing such a loan once you have received the advice of your accountant or other financial professional advisor.
If you are considering taking out a bridging loan then please contact one of our specialist solicitors on 01244 312306 or by email at firstname.lastname@example.org
Call and speak to a lawyer on 01244 312306