Bridging Loans Northern Ireland

Whether you’re completing a Northern Ireland real estate purchase or want to develop an existing property, the most important thing is that you’ve got the funding ready.

Arranging for a property loan through a traditional vendor is a time-consuming process. It can potentially take several months to fill and file a traditional mortgage application.

There’s even more potential for lost time as it could take the bank several weeks to even deny your application.

A bridging loan can help when you’d rather avoid all this fuss. Also known as “bridging finance,” these are short-term loans designed to offer you a temporary source of money to “bridge” the gap to more permanent financial solutions.

You can secure your bridging loan against almost all properties, including commercial and residential properties, building plots, and land where you don’t have planning permission.

One thing to keep in mind about bridging loans is your provider will want to know about your “exit strategy.” You’ll have to go into the loan with a plan to pay it off.

Perhaps you’re considering a long-term mortgage to invest in a property and plan to buy as soon as you can. Or perhaps you plan on selling your home and the money from that will pay off the loan.

Bridging loans can be a little complex. You’ll find it in your best interests to deal with a bridging loan specialist to get through the process quickly, effectively, and without losing money in the process.


What is a bridging loan?

A bridging loan offers fast and flexible financing when you need a loan secured against property. Borrowers can use the loan money for almost anything, but they are typically used by property developers and people who want to purchase new property but it would take too long to get a traditional mortgage or they fall short of lender requirements.

These loans are also a great way to bridge the gap between selling your current home and buying a new one. This is where the term “bridging loan” comes from as, no matter the purpose, the money is almost always used to bridge a financial gap. You can secure your bridging loan in Northern Ireland against almost any UK property.


Bridging loans for home buyers

Bridging loans offer several solutions to people looking to buy a property. These solutions include;

Fast access to the money to secure a property if you find a new property you want before finalising the sale of your current home.

Pushing forward with a home sale even if something goes wrong in the process, such as if your buyer bulls out and you don’t have the money coming in from the sale of your current property, which you relied on to buy the new one.

Self-building projects including conservation and renovation. It can be difficult to get the money to do these things, so a bridging loan could be just what you need.

Finance to purchase a property at auction, as you’ll typically need to pay a 10% deposit to secure property at an auction. Having a bridging loan can help to do this while you secure the rest of the money.


Other bridging loan uses

Bridging loans can help with much more than just buying a new private home.

The other uses for bridging loans include:

  • Business financing – your bridging loan can help cover the start-up costs or other short-term business costs. The money also helps pay taxes when you can’t raise the lump sum needed without assistance.
  • Development financing – A bridging loan could be best if you are buying derelict properties to renovate and flip.
  • Land purchase – Bridging loans can help when you want to buy land that isn’t intended for development, whether it’s for your own personal use or to turn into a commercial property.


Arranging bridging finance

Has learning about bridging finance made you realise you need a bridging loan in Northern Ireland?

We’ll be more than happy to help you learn more and find the best bridging finance product for your needs through our directory. Not all loans are created equal, so it’s good to find the best loan for you.

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