Why should I use this type of bridging loan?

A commercial bridging loan is quite simply a short term lending option that is secured against commercial property or development land or farmland. It’s a specific kind of lending facility designed for commercial developers that allows them the flexibility to raise funds quickly and relatively hassle free compared to other options. Often this money is used to develop the land or building to a specification that will then qualify for a commercial mortgage. It also allows borrowers to use this type of lending to raise large amounts of cash, with many of our panel of lenders willing to lend upwards of £15,000,000 depending on your circumstances.

 

Benefits for property developers:

There’s a few reasons that commercial bridging finance is popular with developers, especially as the market for this type of bridging loan has grown markedly recently. As we know from our clients and panel of lenders, what was once considered something of a niche product is now being used by more and more developers.

• Low interest rate loans: Relatively speaking this commercial lending is very reasonable in terms of interest with rates as low as as 0.43% per month, and this isn’t a fee that you usually have to service on a monthly basis.

• Security: This type of commercial bridging loan can usually be secured against a number of types of commercial property, although most frequently these bridging loans are secured against land, industrial estates or farm land. You can also discuss with our brokers if there’s another type of security or asset that you’d like to be considered and they may be able to arrange to have this valued for you and give advice on whether it’s likely to be accepted.

• Flexible lending terms: for a commercial bridging loan most of our panel of lenders will usually treat each application on its individual merits and this means that it depends on your circumstances what sort of lending terms will be offered. Broadly speaking, it will depend on your deposit and track record but lending terms can vary from 1 to 24 months and interest is dependent.

• Various types considered: commercial bridging loan is a broad term and can encompass a number of projects, and can also be used for things like cashflow, purchasing property, renovation and restoration or business expansion.