Despite the many funding options available to property investors, more and more developers are turning to bridging finance, the alternative type of funding that has grown in popularity in recent years.
There are numerous benefits available to developers looking to use a bridging loan for their property investments and here are some of the most prominent:
Quick and easy to obtain
Unlike other sources of funding, like mortgages, which may take several months to obtain, bridging loans are all about quick turnarounds so borrowers don’t need to worry so much about tight deadlines.
Depending on your conditions and the lender you choose, you can secure a loan for your property investment in less than two weeks! This type of finance is ideal for time-critical situations.
Renovation
Bridging loans are often utilised by those wanting to renovate premises, especially if the property in question has a lot of potential.
The short-term loan can pay for a full renovation, with the loan being redeemed once the investor sells the property on for profit or refinances.
Auction Finance
Bridging loans can be an effective source of funding for property investors looking to purchase property via auction. Bridging loans allow developers and landlords the opportunity to finalise their auction purchase within the tight timescales required.
The majority of auction purchases must be finalised in a month, which means it isn’t possible if the investor is depending on a mortgage which takes significantly longer.
By contrast, bridging loans are a much speedier process, so you can complete your auction purchase faster. At Velocity, we can provide a market-leading bridging loan offering up to 90% of the purchase price, with a two week turnaround!
Are you a property investor? Discuss your bridging loan options with Velocity Bridging on 01704 339588 or info@velocitybridging.com so you can get a tailor-made loan directly for your purposes.