We can help you secure a bridging loan in Chelsea
At Bridging Options, our bridging loans team is equipped to connect you with high street lenders if needed, or a traditional lender if you need a typical bridging loan for residential properties.
In Chelsea, you can find a wide variety of bridging loan providers. This can range from high street lenders to lenders that specialise in first, second, or even third charge bridging loans. This why reaching out to an authorised and regulated representative can find leading bridging loan deals for a property purchase that you may otherwise have not found, had you contacted lenders directly.
Representatives are regulated to offer both open bridging loans or debt secured closed bridging loans if needed. Here at Bridging Options, we specialise in connecting you to the right provider based on your specific and individual needs within an overcrowded network of providers in London.
What is a bridging loan?
Whether you are in Chelsea or the areas of London, a bridging loan allows you to receive short-term financial solution options without long and locked-in mortgage rates.
A bridging loan is first and foremost, short-term finance. It is finance that you can use to buy a property, and typically within a few months, you would then sell or refinance the property in question to then pay the bridging loan back.
Bridging loans work as a stop-gap solution on property finance.
So why would you choose to use bridging finance? You likely think it is sensible to use a mortgage, and it certainly is for most property purchasers the first time around, but a temporary cash-flow problem is a natural part of life, and this is where bridging finance can make a property transaction much easier.
Bridging loans are perfect for properties that are not exactly mortgageable or indeed, for a situation where you may be looking to pull your cash back out or even refinance.
Mortgages are not designed for short-term loans, so if you want to flip a property, for example, mortgages are not designed for this or even property refurbishments since this is an example of short-term finance.
Open bridging loan
An open bridging loan is a type of bridging finance that has no fixed end date.
This means that open bridging loans can be repaid at an agreed-upon date according to what the borrower feels they can manage.
Fewer lenders offer bridging loans that are open.
A traditional high street lender operating within high street banks would be the likeliest type of lender to move forward with open bridging finance.
Closed bridging loan
Closed bridging loans are the most common types of bridging finance offered.
A bridging loan that is closed has a set and fixed end date by which the borrowed funds must be repaid. This timeframe can range from 12 months (the most common) to up to 3 years.
How do you get a bridging loan in Chelsea?
When you need a bridging loan in Chelsea, finding an appointed representative and using a bridging loan calculator are the best first steps.
An authorised and regulated representative can find leading bridging loan deals for a property purchase that you may otherwise have not found, had you contacted lenders directly.
Representatives are regulated to offer both open bridging loans or debt secured closed bridging loans if needed.
You can read more about using a bridging finance calculator.
Who can get a bridging loan in Chelsea?
Bridging loan options are available for virtually anyone needing a bridging loan. But there are some important key details to keep in mind.
You will need to have an existing home or some form of acceptable collateral in order to qualify. Lenders will need to ensure your investment can cover the potential costs of the loan if repayment cannot occur.
A strong and solid exit strategy is crucial, especially if you are seeking a new property purchase or you are going forward with purchasing an auction property.
Your credit score and history will be evaluated, but if you have adverse credit, this is not an automatic denial, it depends on the specific lender – at Bridging Options we can help you connect with lenders in this area.
Types of bridging finance available in Chelsea
The Financial Conduct Authority sets many different types of bridging loans for a range of options. Let’s take a look at each.
Let’s take a look at all three trading styles.
Commercial
A large number of bridging loans filed and approved in Chelsea are within the commercial sphere. These loans are approved when at least 40% of the property in question is used for commercial business purposes.
It is crucial to find the right kind of lender, preferably a lender that specialises in commercial loans, to ensure you get the maximum amount allowed based on the value of the commercial property.
Residential
A residential bridging loan is a full name for what people commonly mean when they refer to a bridging loan in general. In Chelsea, residential properties make up some of the highest investment prices in the nation, so finding a reputable loan adviser for your property is crucial.
Development Finance
In Chelsea, property reconstruction or refurbishment are common occurrences for a variety of different reasons. Development finance is commonly grouped within the sphere of bridging loans since it involves the disbursement of a short-term loan against the property to fund the changes needed to the property.
At Bridging Options, we can connect you with the right development finance loan officer within the London metropolitan area.
Why choose Bridging Options for bridging loans in Chelsea?
We work tirelessly to connect those needing bridging finance in London to the lender that will meet their own individual needs.
Whether you need advice on the process in more detail, or you need to be connected to a lender as soon as possible, we are here to help and meet your needs in a timely, courteous, and professional manner.
You can contact us by submitting an online enquiry via our website contact form here.