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Which Bridging Finance Option is Best for You?

30th Aug 22
Which Bridging Finance Option is Best for You?

Bridging finance is a short-term loan secured by your property. Enness can acquire a bridging loan on a property in Jersey or elsewhere, for example, if you own investment property in the United Kingdom or elsewhere. You may immediately release equity by utilising your home as collateral for the loan. A bridging loan can be used to acquire a new property before your old one is sold, to buy a property at auction, to buy a house without going through a lengthy mortgage application procedure, to develop a property before selling it, or to address a problem, such as buying an unmortgageable property.

Overview of the Different Types Of Bridging Finance

Bridging loans are classified into two types: regulated and unregulated. Bridging loans that are regulated employ a property that you currently reside in or will live in in the future as collateral. A controlled bridging loan would also include the use of a residence purchased for a family member to live in as collateral for a loan. Because the FCA oversees regulated bridging loans, there are laws governing affordability. Lenders will carefully examine your income and net worth if you want a regulated bridging loan to guarantee you can repay the loan easily.
Other types of property are covered under unregulated bridging loans. This might be residential property, which includes buy-to-let, investment, vacation, development, or commercial property.

Enness can assist you whether you require a regulated or unregulated bridging loan. Your broker will have contacts in every market segment, from regulated to unregulated, and for high-value loans to bridging credit for a few weeks or months.

Is Bridging Finance For You?

Bridging loans are short-term borrowing from a few weeks to three years. It is possible to receive cash in a couple of days or weeks since it is known for being rapid to organise. Bridging finance is typically known as a problem solver and an opportunity generator and is commonly employed by high-net-worth individuals who need to access funds rapidly. In addition, bridging finance is frequently utilised if other lenders have rejected you or cannot allow you to borrow since the application procedure for a bridging loan is simpler than other forms of lending (including mortgages).

As with any lending, there are advantages and disadvantages, and you must understand them before proceeding with a bridging loan. Enness' bridging finance brokers will work with you to answer your questions, explain more about bridging financing, and determine whether they suit you. Enness, based in Jersey and with offices worldwide, can arrange the finest bridging finance package for you, completing the transaction as fast and effectively as feasible.