Bridging loans for house purchase are common when you’re looking to buy a new property but your deposit is still tied up in your current property for the short term. In the event you have agreed to purchase a new property before finding a buyer for your own or if part of your property chain has collapsed and you are in need of urgent funding.

Fast bridging loans are helpful in various circumstances, including quickly securing property while still waiting to sell an existing one, building homes or other property, temporary cash flow cover, buying property at a discount, auction property sales, property refurbishments, renovations and developments, un-mortgaged properties, and quick access to funds for business people. At TIC Finance we don’t mind what you need the money for, our helpful staff will help you secure a fast bridging loan.

Bridge loan financing can be used for refurbishment or property development finance, particularly if you’re eager to fix your property but don’t currently have access to the necessary cash.

Bridging loans for house purchase are also used at auction for those without liquid assets. Obtaining bridging finance can allow you to pay the initial deposit (which is a certain percentage of the property value) as soon as the hammer comes down, and then complete the payments in the exact time stated on the auction contract.

Investors looking to purchase properties that cannot have a standard or rather normal mortgage secured on them until corrective work is completed can immensely benefit from bridging loans. This may include property without a kitchen, bathroom, old floors, walls etc. or property that needs doing up for some other reason.

Renovating properties increases their market value which as a result enables the investors to sell them for a profit. That way, they are able to repay the bridging loans as scheduled and also increase their chances of securing long-term finances.

Open bridging loans are those without a fixed end date. While this can be beneficial if your financial situation is not tied to a set date, these loans often come with much higher interest rates.

Closed bridging loans involve a set completion date which is agreed when the application is submitted. The closed loan is most suitable for those who have a clearer idea of when the gap that they are intending to bridge with the loan will be filled. For example, when the borrower has already signed a contract to sell a property and the completion date has been set or is fixed. Upon the sale of the property, the money can be used to repay the loan.

Using a bridge loan can be a great way of sourcing money fast and works best in instances where the gap in your finances has a clear end date. As long as you and your lender have an agreed exit strategy, bridging loan finance can provide you with the funding you need for an additional property, a difficult period while moving in between properties, or much-needed development money.

On the other hand, bridge loans often have high-interest rates. Bridging loan interest rates are much higher compared to other loans due to increased risk and the shorter terms offered. Therefore, it’s a good idea to only use them in circumstances where short-term finance is required (usually 12 months or less). TIC Finance can help you make an informed decision during the process of applying for a bridging loan UK.

When discussing with the lender, you will be able to agree the terms of your loan, including your repayment strategy. If you are using the bridge loan while you wait for your previous property to sell, you may be able to agree to a complete payment of the loan once the sale is complete.

However, for other bridging loan needs, your repayment process will need to be agreed with your lender during your application process.

Because all loans with TIC Finance are secured against a property, there is no need to check your credit history and we have no credit rating requirement. If you need a short-term loan but your credit rating means you have been rejected by other lenders, get in touch with TIC Finance to find out how we can help you.

With a short chain of command, TIC Finance is able to process loan applications swiftly and you could receive the funds within 72 hours of your urgent bridging loan application. We only work with FCA-approved lenders, and every application is witnessed by an SRA-regulated solicitor to ensure you receive your money safely and quickly.

The repayment fees and repayment terms of bridging loans are determined on a case-by-case basis and will depend on the amount borrowed, the security offered, and other factors. The rate of interest varies from lender to lender but is usually higher than other types of loans due to the increased risk associated with them. Speak to one of our expert loan advisors today for more information about bridge loan rates.

Other than providing bridging finance solutions in the UK, we provide an array of financial services, such as stopping repossession and clearing mortgage arrears, selling your home quickly, joint business funding, and financing for property developers and investment property. Speak to us for our specialist advice that is tailored to your financial and personal circumstances.