There are many reasons why you may want a Spanish bridging loan. Sometimes it will be because you want to buy a Spanish property quickly. In other cases, you may wish to release equity from property you own in Spain.
Speed
Whatever your reasoning, one of the advantages of Spanish bridging loans is that they can be completed quickly, and you can draw down funds very fast – often in just a few weeks. Some lenders can complete deals in under two weeks, even in international transactions.
Bridging loans are much faster than mortgages. Many borrowers consider Spanish bridging loans because they can move ahead to buy property quickly before refinancing via an international mortgage, which is usually a time-consuming process as mainstream lenders move comparatively slowly as they look to underwrite risk.
Bridging lenders of any kind, including those who offer Spanish bridging loans, are built to move quickly. They make lending decisions fast and will often be able to move things forwards per your timeframe to ensure you can draw down funds in the minimum timeframe.
Flexibility
Bridging finance is one of the most flexible ways to borrow, and these loans can be used in many different ways. For example, you can only use something like a mortgage for one reason (i.e., to buy real estate), but bridging loans and bridging lenders can offer finance for more diverse reasons and uses.
Amongst others, a Spanish bridging loan will be secured against a Spanish property and can be used to:
- Buy real estate (in Spain or abroad)
- Create capital quickly
- Consolidate debt
- Invest in securities, stocks, shares, bonds or a business
- Buy other assets
While bridging finance is flexible, it is not unlimited in its uses – you can’t approach a lender for a loan without having a fixed idea of what you want to do and why you want this type of finance. This is especially important in international bridging deals where the loan capital will be deployed outside Spain, despite being secured against Spanish property. Lenders are open to seeing loan capital used quite broadly, but you will need to have a defined plan of action that will detail how you will manage the funds, what you will do with them, and – most importantly – how you will pay the loan back.
Large Spanish Bridging Loans
Both large and small bridging loans are a possibility. It is possible to access large Spanish bridging loans of €1-€5 million. Some lenders can write larger loans.