Our short term bridging loans are for purchase, refinance, property improvement or to unlock working capital for business purposes.
This unique overdraft provides you with a flexible drawdown facility giving you instant liquidity and avoids heavy setting-up costs.
Individually structured loans for residential and commercial projects, with finance available for site purchase, construction and fees, refinance, equity release and to provide working capital. Loans are available up to 90% of the site cost.
Flexible first and second charge non-regulated loans available on terms from 3 to 5 years.
We have a commitment to innovation and with the ever changing financial landscape around us we have designed a range of unique Specialist Lending products that solve a range of property finance needs.
By Jonathan Rubins, Director & Chief Commercial Officer at Alternative Bridging Corporation
Bridging loans play an essential role in enabling investors to capitalise on opportunities quickly and efficiently. One such option that has gained significant traction in recent years is the bridging loan. This article explores some of the various reasons why property investors are increasingly utilising this popular financial tool.
A bridging loan is a short-term finance solution designed to bridge the gap between the purchase of a new property and the sale of an existing one. Typically, these loans are secured against property assets and are intended to be repaid within a relatively short period. For our Bridging Loans, the terms are 3 to 24 months. Unlike traditional mortgages, bridging loans offer a quick and flexible funding solution. This makes them particularly attractive to property investors who need to move swiftly to seize investment opportunities.
Property auctions present a unique and often lucrative avenue for investors to snap up potentially under-valued properties. However, the time constraints associated with auction purchases mean that having immediate access to funds is imperative. Bridging loans can be delivered quickly compared to traditional mortgages. They provide the necessary liquidity to secure properties at auction, allowing investors to act with confidence and not miss out on potential deals. The ability to quickly secure financing can make the difference between winning and losing an auction bid. The certainty of funding provided by a bridging loan means that investors can attend auctions with the confidence that they have the financial backing necessary to make immediate purchases. This financial security is crucial when competing against other bidders.
Many investors purchase properties that require significant renovation before they can be resold or rented out. Light Refurbishment Loans can cover the costs of these renovations, providing the investor with the funds needed to improve the property’s value. Once the renovation is complete, the investor can either sell the property for a profit or refinance it with a traditional mortgage. The flexibility of bridging loans makes them an ideal solution for funding these types of projects.
Property transactions often involve chains, where the sale of one property is dependent on the sale of another. If one link in the chain breaks, it can jeopardise the entire process. Bridging loans offer a safety net in these situations by providing temporary financing to keep the transaction moving forward. This ensures that investors can proceed with their purchases without being held back by delays in the chain.
One of the most significant advantages of bridging loans is the speed at which they can be arranged. Traditional mortgage applications can take weeks or even months to process, however bridging loans can often be secured far more quickly. This rapid access to funds is particularly beneficial for investors who need to act quickly to take advantage of time-sensitive opportunities. The ability to secure fast funding can be a game-changer.
For those involved in property development, bridging loans offer a viable financing solution for acquiring land and funding construction projects. Developers often face significant upfront costs before they can secure long-term financing. Bridging loans fill this gap by providing the necessary capital to start and continue development projects. Once the project reaches a stage where it can be refinanced or sold, the bridging loan can be repaid.
Bridging loans also facilitate the expansion of property portfolios. Investors looking to diversify or increase their holdings can use bridging loans to quickly acquire new properties. This strategy allows them to take advantage of market opportunities without waiting for the sale of other assets or the lengthy approval processes associated with traditional mortgages. The flexibility and speed of bridging loans make them an attractive option for portfolio expansion.
Being a principal lender, we have access to our own funds, we are able to provide your funding swiftly with as little stress as possible. Our UK bridging loans are available from 3 to 24 months for up to £3.5 million. These short-term loans are ideals for those looking to purchase, refinance or make improvements to their property. They can also be used to unlock working capital for your business.
We offer a range of regulated and non-regulated bridging loans that provide fuss free, fast funding across England, Wales and Scotland.
Our Residential Bridging Loans are ideal. These are secured by a first charge mortgage on a variety of residential investment properties. Residential Bridging Loans are available in the amount of £150k to £3.5m on first charge.
Commercial Bridging Loans can be a financial lifeline. These short-term loans ca be secured against office buildings, retail units, industrial premises and other residential and commercial premises. Commercial Bridging Loans are available in the amount of £250k to £3.5m on first charge.
If you need to make refurbishments that don’t require planning permission, our Light Refurbishment Loans are ideal. These loans provide fast bridging finance and can be secured on a variety of properties. These include buy-tolet houses and flats, licenced HMOs, residential investments, student accommodation owner-occupied retail, industrial and office properties. Light Refurbishment Loans are available in the amount of £250k to £3.0m on first charge.
With a short chain of command, and our directors and executives all under one roof, we make swift decisions in order to provide our clients with fast bridging finance opportunities. We embrace modern technology and ways of working and have continued lending actively and efficiently for over 30 years. Service is always our number priority, and our Business Development Managers, Case Managers and Underwriters are experienced, knowledgeable and just a phone call away.
In conclusion, bridging loans have become an essential tool for property investors in 2024, offering a range of benefits that cater to the dynamic needs of the market. Whether it’s securing a property at auction, funding renovations, overcoming chain breakdowns, obtaining fast funding, financing auction purchases, supporting property development, or expanding a property portfolio, bridging loans provide the financial agility required to succeed. As investors continue to seek out opportunities in a fast moving market, the demand for flexible and rapid financing solutions like bridging loans is likely to remain strong going into 2025.
If you have any questions about our range of Bridging Loans, feel free to contact our experienced BDMs.
Don't miss our product updates or property market news.
By entering your email address, you agree to receive our marketing offers in accordance with our Privacy Policy
