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3-May

Do you find yourself in an ideal situation to secure a fantastic property at Auction? Or the perfect tenant for your commercial offices – but they have requested an upgrade to facilities? You open the vault and find that the cash flow just isn’t available over the next year to do this, but you know that it will be there later. But you cannot let this amazing property or tenant slip through your fingers. What to do?

Situations like the above are where commercial bridging finance comes in. Investors use this type of finance to help bridge a gap between their finances so that they can keep a seamless commercial folio going.

As Commercial bridging loans are often sought when alternative finance is not an option, such as not having enough in the bank, and not wanting a long-term re-mortgage commitment. Bridging loans can be a useful tool for any savvy commercial investor – the speed at which bridging loans can be granted is not for the light-hearted.

For example, you just know buying that property at auction and then renovating it will give you a considerable return, if only you had the finances to buy it. But how can you get a loan in a matter of days? Welcome to the world of commercial bridging finance!

It is worth noting that commercial bridging loans are offered over a short period of time, a year or more. They can often have higher interest rates and are interest only.

An experienced mortgage broker will not only be able to advise on the best commercial bridging loan for your needs but may also be able to secure you one in a few days. It is worth noting, that the broker will still need to be able to demonstrate how you intend to pay back the commercial bridging loan at the end of the loan term.

Types of Commercial Bridging Loan

First charge & second charge Loans: A loan that enables a lender to recoup their interest in a property in priority order, as the name suggests “First Charge” would mean the lender with the first charge would have first rights to recoup should a borrower default. 

Open Bridge: This type of loan does not have a set repayment date but can have very high-interest rates.

Closed Bridging: A mutually agreed timeframe by the lender and borrower, in which the loan is repaid. Loans like these may have a lower interest rate.

Get in Touch

If you are interested in taking out a commercial bridging loan, then get in touch, The Mortgage Brigade has a fast turnaround, and we may have this done for you in 2-4 days. Call us today to see how we can help.

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