At Red Rose Financial Services Ltd, founded in 2023, we harness over 15 years of combined experience to provide you with the best bridging finance solutions available. Though the property market constantly evolves, our dedication to finding optimum property finance packages remains unyielding. Let’s delve into the world of bridging loans and how they can benefit you.
Written by:
Nagina Haroon CeMAP
Director
Last Updated:
04.12.2023
Written by:
Nagina Haroon CeMAP
Managing Director
Last Updated:
04.12.2023
A bridging loan, commonly referred to as “bridge finance”, is a short-term loan that “bridges” the gap between the sale of a current property and the purchase of a new one. It offers quick access to funds, often used to close deals swiftly or to resolve short-term financial needs.
Bridging loans are typically for:
This is a bridging loan with a fixed repayment date. They're generally lower risk for lenders as there's a clear exit strategy, which can result in more favourable bridging loan rates.
No fixed repayment date but usually expected to be repaid within 12 months. It's more flexible, but bridge loans cost a bit more due to increased risks.
First charge is when the bridging finance is the only loan secured against a property. Second charge applies when there's an existing mortgage and the bridging loan is secured against the remaining equity.
You can choose between a fixed interest rate, ensuring the rate remains constant, or a variable rate that fluctuates with the market.
Secure properties quickly where immediate funds are required.
Finance property developments or refurbishments to increase its value.
Acquire land for development or investment purposes.
Prevent the collapse of a property chain by bridging the finance gap.
Consider factors like your repayment capability, the urgency of your need, and the cost of the loan. Always consult with financial advisors, like our expert team, before making a decision.
Pros:
Cons:
At Red Rose Financial Services Ltd, our passion, transparent processes, and focus on customer service ensure that you get the best. With services that extend beyond bridging finance, like Equity Release, Commercial Mortgages, Protection, and more, our diverse offerings and established relationships with lenders ensure that we have real-time access to the best rates available.
In our journey, we’ve garnered fantastic customer reviews, leading to repeat business and numerous referrals. If you need advice or more details on the services we provide, don’t hesitate to visit our homepage or call our dedicated team at 0333 090 9467. Your financial bridge to your property dreams is just a conversation away.
Wondering how much your monthly mortgage payments will be? Get an instant estimate online. Don’t stress about budgeting for your dream home.
Director
Qualified Solicitor
A Bridging Loan is a short-term financing option used to bridge the gap between the purchase of a new property and the sale of an existing one. It’s a flexible solution for those who need quick access to funds to secure a property purchase when faced with a time-sensitive situation, such as buying at auction or in a chain.
Bridging Loans differ from traditional mortgages in that they have a shorter term, typically ranging from a few months to a year. They are designed for temporary financing and often have higher interest rates. Unlike mortgages, they are more focused on the property’s current value and the borrower’s exit strategy.
Eligibility for a Bridging Loan depends on factors such as the value of the property, the borrower’s ability to repay the loan, and the proposed exit strategy. Lenders may also consider the borrower’s credit history. Our mortgage advisor can help assess your eligibility and find suitable lenders.
Bridging Loan interest rates can vary widely, but they are generally higher than traditional mortgage rates due to the short-term nature of the loan. Repayment typically occurs when the property is sold or when the borrower secures long-term financing through a traditional mortgage or another source of funds.
Bridging Loans are known for their speed. The application process can often be completed within a matter of weeks, making them an ideal choice for time-sensitive transactions. Our experienced mortgage advisor will guide you through the application process, ensuring a swift and efficient experience.
Ready to dive into the world of mortgage comparison and secure the best Bridging Loan? Speak to a mortgage advisor today and let’s embark on this journey together.
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Ready to dive into the world of mortgage comparison and secure the best mortgage? Speak to a mortgage advisor today and let’s embark on this journey together.
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Red Rose Financial Services Limited is an appointed representative of Beneficial Ltd, which is authorised and regulated by the Financial Conduct Authority, FCA number 736655.
Red Rose Financial Services Limited is authorised and regulated by the Financial Conduct Authority, FCA number 1006655.
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