Bridging Loans Cardiff

If you’re considering buying a new property or have plans to redevelop an existing one, you will require funds in place that are ready to take out.

However, it isn’t always easy to get access to traditional finance and certain barriers can make the process drawn out and complicated. Most mortgage applications done by banks and building societies tend to take months to complete.

The modern real estate market moves quickly and most people simply don’t have the time to wait weeks to hear back from an application. Luckily, there is a viable alternative to this and it comes in the form of bridging loans in Cardiff.

When it comes to getting financing for property-related transactions, bridging loans offer numerous advantages.

For those wondering what bridging loans are, they can be described as a form of short term finance designed to plug in urgent cash needs.

This makes them ideal for property transactions especially when the market is fast-moving. Usually, there is a gap between selling an old property and buying a new one, and bridging loans can cover this.

There are a variety of brokers that help to provide these types of loans.

Bridging loans in Cardiff can be secured against residential properties, commercial properties, building plots, and land that does not have planning permission.

Some of the key advantages of bridging loans include;

  • Fast finance available when you need it most
  • Flexibility
  • Access up to £25million in finance


What is covered?

Here are some of the property transactions that are covered through a bridging loan;

  • Residential property purchase
  • Break in chain transactions
  • Development and refurbishment of existing property
  • Downsizing
  • Purchasing property abroad
  • Auction property
  • Lease extensions


To attain a bridging loan, you will need to show the lending provider how you intend to pay back the loan.

This may be from a new mortgage or from funds that you get from selling your old home. A provider will want to make sure that you have the means to repay the loan.


Bridging loan process

The primary purpose of bridging loans is to cover financial gaps that often occur in property transactions.

They are useful when time is of the essence and waiting weeks to hear a mortgage decision may lead to losing out on a property. The viability of a bridging loan will depend on your individual circumstances and financial standing.

A bridging loan starts to build up interest once it is taken out, but it is different to a regular loan due to the fact that monthly payments aren’t required.

Instead, the loan is paid with full payment of the loan value and interest accrued. Therefore, bridging loans are intended to be a short term solution to fill financing gaps.

On average, the loan period is 12-24 months and the lender will need confirmation of your ‘exit plan’. It is advisable to consult with a professional to help secure a cost-effective bridging loan.

Types of bridging loans

There are two varieties of bridging loans:

Open bridging loans

An open bridging loan is for those who have seen a property they want to buy but have not completed the sale of their old home yet.

Lenders tend to be more strict about offering these loans since the sale of the home is not completed, and there is a chance it could fail.

One thing that significantly boosts your chances of getting this loan is having high equity in your current home.


Closed bridging loans

A closed bridging loan is for when there is an exchange on a property that needs extra funds to be finalised.

Lenders are more willing to offer this type of loan since the transaction is almost complete and the funding will help to enable the final steps.


Secure a bridging loan today

If you’re looking to complete property transactions in Cardiff and need support, then please reach out to us to learn more about your options.

Our directory of trusted bridging finance lenders can help connect you with a provider that suits your needs.

It is vital to go with a specialist to help secure the finance you need to ensure your property transaction can go through smoothly.

We always recommend trying a few different providers to get the best possible deal on your bridging loan in Cardiff. If you would like help with calculating fees, then use our bridging loan calculator.