What is a 'Bridging' loan?
Bridging loans/finance is a type of short term loan, a common interim financing option to solidify a short term position until a long term financing option can be arranged. That is where the term ‘Bridge’ comes into effect as a method of finance to get you from one step to another. It is extremely useful where you need the money urgently and for a short term period.
One the main requirements for a Bridging loans are for you to have a clear and concise Exit plan. An Exit plan should show you intend on settling the bridge at the end of the term, you will need to demonstrate how you will clear the debt and/or move onto a more permanent method of funding such as a mortgage. Bridging lenders usually charge a higher rate of interest than the average high street lender.
Here at The Sethi Partnership Solicitors we have experienced Solicitors who can act for bother borrowers and lenders. Whilst it is niche area our expertise is vast and we can pre – empt any of the usual pitfalls to ensure that you are able to drawdown funds as soon as possible. We completely understand the urgency that arises with bridging finance and we will work with you, the third party solicitors and your broker to meet the deadlines.
As solicitors we are not authorised to give you financial advice. If you wish to apply for a bridging loan please either contact your own independent financial advisor or ask us to put you in touch with one.