Alternative Tips: When should you use a bridging loan?

Bridging finance is growing in popularity as more borrowers recognise the many benefits of short-term property finance. According to the Association of Short Term Lenders (ASTL) completions, applications and loan books continued to grow in Q1 2023. During this period, the value of loan books increased by 4.0% to just over £6.8bn, applications rose by 13.1% to £9.8bn and completions grew by nearly 12% to £1.4bn.

So, what’s behind the growth in bridging finance?

One of the main benefits of a bridging loan is that they can provide transitional finance for a period of months to help a borrower overcome a short-term hurdle and achieve their long-term objectives.

So, for example, a property investor who is refurbishing a property, or a home mover who needs to complete a purchase before selling their existing property. One current trend is buyers who are using bridging to put themselves in a stronger position when downsizing from their current property.

Bridging loans can also be used for business investment, provide a quick source of capital that can enable business owners to take advantage of opportunities to grow for the future.

At Alternative Bridging, we provide bridging loans for both regulated and non-regulated purposes, which can be secured on residential or commercial property as either a first or second charge. We also offer an innovative Alternative Overdraft facility that enables customers to draw down funds as and when they need them.

Bridging finance could provide a vital source of funding to help you achieve your objectives. If you want to speak to experts who have been providing bridging loans for more than 30 years, pick up the phone and speak to Alternative Bridging Corporation.

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