Bridging Loans Leeds
Leeds is a key part of the commercial and financial heart of the UK. The city is home to some of the largest insurance and financial providers in the country.
As such, it’s no surprise our bridging loan in Leeds team are experienced with providing different bridging finance products according to your needs.
Bridging Loan Directory has access to the entire financial market and understands the complex nature of bridging loans. We can set you up with a lender whose deals you won’t find with a traditional mortgage provider through our trusted directory.
Property transactions are a complex process. You need to have all the money in place at the right time to ensure the deal moves forward.
Any break in the chain can cause significant delays. You might even lose out on your chance to purchase a property if you don’t have money ready.
The problem is that traditional finance such as a mortgage can take weeks – if not months – to process.
Not only do you have to go through a lengthy application process, but you often have to make a significant deposit with the lender – sometimes up to 25% of the property value.
It can be weeks before you even learn that your application failed.
If you don’t have that kind of time, you need an alternative lending solution. Bridging loans in Leeds are the alternative to traditional property financing that you need.
Bridging loans are specialist loan products designed for short-term lending. These products offer a temporary cash-flow solution to borrowers to “bridge” the gap to a more permanent financial solution.
You can secure your bridging loan against commercial property, residential property, a building plot, or land without planning permission.
The more equity you have in the home, the more a lender will be willing to let you borrow.
How do bridging loans work?
A bridging loan allows a lender to cover a financial gap, such as a gap caused by a break in the property transaction chain.
The loans are useful when you need a temporary solution and don’t have the time to wait for a mortgage or loan application to process.
A bridging loan could be the solution to your financial issues, depending on your circumstances. One thing to note about bridging loans is that you don’t make monthly payments.
While the loans do generate monthly interest, the entire balance is paid off at the end of the loan term.
You should be aware of the total cost of the loan before applying. A bridging loan calculator is your friend here. Keep in mind that these loans are short-term solutions.
Your average bridging loan in Leeds has a loan period of between 12 and 24 months.
What can you use a bridging loan for?
Bridging loans are suitable for all sorts of purposes, including:
- Purchasing property
- Developing and refurbishing property
- Buying property abroad
- Buying property at auction
- Extending a lease
- Completing a sale when something goes wrong
Bridging loan providers will generally require you to offer a detailed outline of your exit strategy for the loan. This exit strategy is essentially how you plan to repay the loan.
One example would be to use the money from a property sale to pay back the loan. The stronger your exit strategy, the more likely a lender is to approve the loan.
Is a bridging loan right for you?
Bridging loans could be the right option for you if you need a short-term financial solution and don’t have the time to wait for a traditional loan or mortgage to process.
Just make sure that you have the means to pay back the loan in time. Even if you will benefit from having a bridging loan, you need to ensure you get the right loan for yourself.
The loan market is tough to navigate at the best of times. It helps to have professional assistance on your side.
That’s where Bridging Loan Directory comes in. If you need a Leeds bridging loan for any purpose, view our directory of the best lenders.
We always recommend trying a few different providers to get the best possible deal on your bridging loan in Leeds. If you would like help with calculating fees, then use our bridging loan calculator.