With Charles & Derby Estates, securing a bridging finance loan has never been easier. We can explain to you in detail exactly what the application process entails to maximise your chances of being approved for a loan. Whatever you need the loan for, we’re here to guide you along the way and make an informed decision on the right lender for you, as well as an appropriate amount and repayment scheme that suits your exact requirements.
A bridging loan is often used when you are looking for a short-term financial fix to cover the gap between when you will need cash and when your expect to be in the black again. Examples of uses for a bridging loan could be when you need cash to purchase a new property before your old property has been sold.
This is often the case when homes are bought in an auction, and need to be paid for in a matter of weeks when your current property is not even on the market yet. This also applies to businesses, if there is a certain time of year or exceptional circumstances that cause you to close or lose revenue for a determined period of time, then this type of loan will help you stay afloat and can be paid back once you are back on your feet financially.
Two types of this loan exist, one is closed and the other is open. When you take out a closed loan, you can expect a certain date due for repayment and is often approved when you have already exchanged property contracts after selling your home but it has not completed yet. The open kind does not have a solid date that you need to repay it, but as it is only short-term you’ll have to pay it back usually within 12 months.
We can help you determine how much you need to borrow and for how long, devising a strategy of repayments that suit you, be it releasing your existing home’s equity or even taking our another mortgage on the property to cover it. We can even create backup plans in case the worst should happen and your plans fall through for whatever reason.