Getting A Bridge Loan For An Edinburgh Property
What is a bridging loan, and how do they work?
A bridging loan for a property purchase or an investment property is a valuable alternative to traditional finance - it provides greater flexibility, options, and a faster turnaround time.
Fast financing will allow you to avoid losing out on an investment opportunity no matter what kind of property you're interested in – if you want to buy a residential Edinburgh property but are awaiting the proceeds from the sale of your current property, bridge finance can help you “bridge the gap” and purchase your new home quickly.
What’s the difference with an Edinburgh bridging loan?
The application process for a bridging loan in Scotland is, for the most part, the same. However, the legal process is different due to property law.
Consequently, fewer lenders operate within Scotland, making it more challenging to find available options. However, we can help.
The specialist lenders we work with regularly finance Scottish property, and we can assist you with securing the right bridging loan that meets your needs - avoiding the pitfalls many can encounter when seeking alternative financing options.
What are the advantages of bridging loans?
- Fast finance - the primary advantage of bridging loans is the speed at which they can be delivered - making you a cash buyer in a competitive market will expedite the entire process and lock in a dream property. Loans can be secured from £50,000 to several million. Additionally, having the funds to hand can alleviate the stress of relocating – especially when moving from England to Scotland – allowing for a smooth transition to your new Edinburgh property.
- Flexible in its application – Bridging finance can be applied to multiple scenarios that suit any type of property purchase in Edinburgh – residential, commercial, property development or renovations. Providing you have adequate security, the loan can be used to bridge any gap when financing a property.
- “Rolled up” interest – While interest rates are more expensive in bridging finance, you can “roll-up” payments - negating long-term interest on the loan by repaying it earlier.
- LTV (Loan-to-value) - when applying for a bridging loan, the total sum needed depends on the lender’s evaluation of the property. Lenders can offer favourable terms depending on your security. Consequently, giving you the advantage when looking to buy a time-sensitive property in Scotland.
- Credit history - with a bridging loan, lenders will mainly consider property value (the security) as opposed to an individual’s income or irregular credit history. However, you must ensure a suitable and realistic repayment plan is in place – bridging finance is a short-term solution that requires a solid exit strategy.
What can an Edinburgh bridging loan be used for?
Bridging loans are flexible in their application and are suited to various forms of financing property and projects:
• Investment or commercial use property
• Buying Scottish residential property
• Unmortgageable property – development sites, property bought at auction
• Renovations or refurbishment
If you’re looking to purchase residential property, you might be planning to downsize or upsize – a bridging loan will suit both these types of property purchases and will “bridge the gap” between sales and allow you breathing room during a possibly stressful period.
Additionally, bridging loans allow allocation of funds elsewhere – you could renovate your old property to maximise market value before a sale, for instance.
How much can I borrow?
Initially, you can use a bridge loan calculator to get a general idea of the overall cost of a bridging loan. The cost will vary depending on your case and a lender’s criteria. It is always best to seek the aid of a specialist broker when proceeding with bridging finance.
We can secure bridging finance for your Edinburgh property
In need of bridging finance to buy property in Edinburgh? Our brokers can help. We can provide affordable bridging options from our network of specialist lenders.
What we can offer:
- Residential, commercial and development property finance – for all common uses, and fitting a variety of clients’ needs.
- Flexible terms (1 to 36 months)
- FCA regulated and unregulated loans
- “Rolled-up” interest schemes
How we can help:
We can secure bridging finance for any type of borrower – limited companies, individuals (no upper age limit), sole traders, partnerships, and trusts.
- We have access to the entire short-term market
- We have established relations with a network of both niche and specialist lenders
- And, depending on the complexity of a case, we can secure finance in under a week (5 to 7 days)
