Regulated Bridging Loans Specialist
When purchasing property, you may come across new opportunities that require you to act quickly. But what happens when traditional mortgages can’t keep up with your swift pace? That’s where our regulated bridging loans come in – the quick and reliable solution to your short-term finance needs.
At Bridging Options, we are bridging loan specialists, providing clients with solutions for their short-term finance needs. We connect them to commercial broker experts who can support them in every step of the process.
So, whether you’re looking for regulated bridging finance to facilitate your property portfolio, assist your property development project, or save you from breaking the dreaded property chain, then contact us today for free bridging advice.
What is a regulated bridging loan?
A regulated bridging loan is a short-term finance solution that offers lenders and borrowers more security and understanding of their loan terms. It is a type of financing that uses the borrower’s property (usually their home) as collateral for the loan.
Isn’t all bridging finance regulated?
While you may think that all bridging finance is regulated, this isn’t always the case. Since bridging loans offer more flexibility to borrowers, they can come in various forms, including regulated and unregulated.
Regulated bridging loans are short-term loans secured against a property owned by the borrower (or a property they intend to purchase). These loans offer more security to the bridging lender and the borrower and usually come with lower interest rates.
Unregulated bridging loans are short-term loans not secured against any property or assets the borrower owns. As a result, they tend to come with higher interest rates and more risks.
What can a regulated bridging loan be used for?
There are many ways to use regulated bridging loans, from securing your new home before your current one sells to renovating a worn-out property. We help clients find the best bridging loans for their individual circumstances.
Here are just some of the reasons you might choose to use regulated bridging finance for your next property venture:
Bridge the gap between property sales
One of the most common uses for a bridging loan is to help bridge the gap between property sales. So, if you have found your dream home but are still waiting for your existing property to sell, then you might be able to snap it up before someone else does.
With a regulated bridge loan, you will have access to short-term funding to facilitate the purchase of your new property. The loan will then be repaid from the money you receive once your old property has sold.
Buying a property at auction
You might already have some auction property experience, but either way, you’re likely to know that buying a property at auction is a race against the hammer. One of the best ways to fund purchasing an auction property is to use a bridging loan.
When using bridge loans for auction properties, you can access finance within a matter of days, helping you get ahead of the competition for making a quick purchase. The loan amount can be secured against the property you purchase or another property in your possession while you look to find long-term finance, such as a mortgage.
If you are looking to refurbish a residential property to sell or want to increase the value of your existing home, then a bridging loan might be the solution you are looking for. Bridging loans offer property developers and individuals quick access to funds for their refurbishment projects, allowing them to start as soon as possible.
A refurbishment bridging loan provides secured funding that is usually paid out in two stages. In the first stage, you will receive finance based on the calculation of your current property, and in the second stage, you will receive an additional lump sum after the refurbishment is complete.
Our regulated bridging loan service
When looking to secure a short-term loan to purchase property, scrolling through the various bridging lenders and their specific lending criteria can be time-consuming. We provide fast and easy bridging loans for property owners, developers and individuals who have non-standard repayment strategies (such as investments or inheritance).
At Bridging Options, we’re helping you access faster bridging loans for your property-buying needs. We have numerous bridging loan solutions, including loans for self-build projects, hotel finance, house purchases, and so much more.
When working with Bridging Options, you can expect:
- Fast turnaround: Get faster access to finance in 5-15 days, sometimes quicker, with the help of our bridging loan specialists.
- Specialist knowledge: Find out what options are available to you by speaking to our expert advisors.
- Fast application: Make your application faster and simpler with our quick and practical guidance.
- No exit fees: Pay when you are ready to do so with no early repayment fees.
How do I know if a regulated bridging loan is right for me?
The type of loan you decide to choose will depend on various factors, including your situation, the purpose of the loan, how much you plan to borrow and your eligibility. But, with so many different types of loans out there, we understand if you’re struggling to find the right kind of bridging loan for your situation.
The good news is that with our knowledge and expertise, we can help you decide which type of bridge loan you should apply for.
Regulated loans: most suitable for individuals or small businesses looking to secure short-term financing to purchase, renovate or refinance residential properties. So, whether you’re a property developer, investor or looking to move home, then this type of financing is for you.
Unregulated loans: suit a broader range of borrowers who are looking for more flexible finance solutions. They are typically used by property investors, developers and companies looking to fund commercial property projects. If this sounds like you, then an unregulated loan might be the best solution.
Who is eligible?
When you apply for bridging finance, lenders will want to know if you can afford to take out the loan and repay it on time. Some lenders are more lenient than others, but you will likely have to follow a strict set of criteria.
Regulated bridging loans come with a certain set of criteria, which often include:
- Affordability checks: can you afford the loan amount?
- Creditworthiness: are you a reliable borrower?
- Collateral: do you have an existing property for security?
- Purpose of the loan: what is the loan for?
- Exit strategy: how do you plan to repay the loan?
Choose Bridging Options for your regulated bridging loan
At Bridging Options, we understand the time, money and energy that goes into finding and buying a property. Whether you’re planning to purchase a home to live in or looking to fund a property flip, we have the tools you need to help you do it quickly and securely. We’ll help you finance your next property purchase by sourcing the most suitable short-term loan through specialist lenders.
If you are seeking fast access to interest-only finance, then contact our specialist advisers today. We offer bridging advice that is easy to understand.
For more information about bridging loans, please take a look at some of our most frequently asked questions below.
Who regulates loan companies in the UK?
In the UK, bridging loans are regulated by the Financial Conduct Authority (FCA), which is responsible for ensuring consumers are protected and that finance providers operate appropriately.
Is a bridging loan just a regulated mortgage?
Even though bridging loans and mortgages are similar in terms of their size and use, they do have a significant difference.
Bridging loans provide individuals and businesses with short-term funding to assist borrowers in buying or refinancing a property quickly. They offer a faster and more flexible mortgage solution but often come with a higher interest rate. Residential mortgages, on the other hand, are long-term financial products for individuals who plan to own a property for many years.