Bridging Loans

Short Term Finance To Cover The Gap

What is a Bridging Loan?

Bridging Loans are effectively a borrowed amount which is used to cover a gap in long-term finance arrangements or to cover specific short-term requirements. With similar amounts of finance as a mortgage, but with a shorter-term repayment structure they are often used to bridge the gap in moving a business into new premises or cover a home loan while you wait to sell.

But you may be wondering, why should I take out short-term financing?

The Advantages of a Bridging Loan

• Terms can be tailored to suit your unique circumstances and projections.
• Bridge finance can be arranged much quicker, within days or weeks, rather than months as with a regular mortgage.
• This type of short-term loan is secured against property value, meaning they do not focus on your income or credit record.
• For regulated bridging loans, the interest will be included in the total amount of the loan, which is to be repaid by the exit strategy at the end. This helps to relieve financial pressure on homeowners already paying for a personal mortgage.
• The same option to include interest in the total amount is also available to non-regulated investor borrowers, which can reduce the pressure on cash flow throughout the project. 
• It's possible to secure high loan-to-value (LTV) financing with a bridge loan. Many lenders are willing to offer 75% LTV terms, with some lenders willing to provide up to 80% LTV with additional security. The ability to source such a significant percentage of the finance needed gives borrowers sufficient leverage in buying a property in Scotland.

How to get a bridging loan

The Bridging Loans and Development Finance market has been enjoying brisk trading in recent times, and the Lending Channel can provide access to a wide range of secondary lenders.

Based in Scotland, we are experts in the Scottish bridging loans market, finding the best bespoke funding solutions available for our clients across the country (including Glasgow, Edinburgh, Fife, Dundee and Aberdeen) and throughout the UK. 

We provide guidance, support, and services to secure the best market leading rates that will meet all your requirements for short-term financing. With an extensive network of lenders and specialist knowledge in all financing areas, we are here for you.