Bridging Loan for Property Development
What is a bridging loan for property development?
There are a few types of bridging loan, all of which are high value, short term loans. There is no cap on how much can be borrowed and they have a maximum term of 12 months.
A bridging loan for property development is specifically designed to help you get your residential or commercial property development project up and running quickly. The aim is to give you the funds you need until you sell the property or take out longer-term finance such as a mortgage.
The usual approach with a bridging loan for property refurbishment is for the loan to allow you to buy a property plus pay for all the work required. You repay the loan by selling the completed property – or taking out a mortgage on it.
How does a bridging loan for property development work?
What can you use a bridging loan for?
Are there any disadvantages to a bridging loan for property development?
Are there any alternatives to a bridge loan for property development?
Some people find that it is helpful to set up a limited company for the development, as you can borrow finance against profit in your business. Development finance is another option to explore and you could look at asset finance or invoice finance too.
How can HMO Finance help?
As a team of experienced property finance professionals, we are here to discuss all the options available to you for your project, including bridging loans for property development.
We will sit down with you and explore your situation and the details of the project you have in mind. Because we work with many lenders – ones you won’t find on the high street, we can save you time and legwork researching the market for the right lender to match your required loan amount and cash flow needs.
We’ll also aim to save you money by seeking out the most competitive interest rates for your bridging loan – keeping arrangement fees in mind too. In addition to seeking out the right product, we’ll make sure you have a viable exit strategy and a long-term plan for financing the completed property as needed.
Contact us today for an initial chat with one of our advisors about how we can help. We are authorised and regulated by the Financial Conduct Authority.