Benefits of Bridging Loans
A bridging loan acts as a secured short-term loan. They are used to ‘bridge’ a gap between debt due. The most common use of bridging finance is within the property sector, typically in the renovation market. This product is not limited to those in these sectors, as it can have plenty of benefits acting as a short term loan in difficult financial circumstances.
Within the home renovation industry, bridging loans can be invaluable. If you were looking to purchase a property, the chances are that unless you are extremely cash rich, you would need to obtain a mortgage. Obtaining a mortgage might take a lengthy period of time and accordingly, you run the risk of missing out on the property you would like to purchase. In addition to this, you may not be able to obtain a mortgage on the property you are looking to buy.