What is a Bridging Loan?
A bridging loan is a short-term financial solution designed to help individuals and businesses bridge a funding gap. This type of loan is secured against a property, typically by a first or second charge.
How Does a Bridging Loan Work?
Bridging loans are Characterised by their speed and flexibility. They usually have a term of 1 to 24 months. There are two primary types:
- Retained Interest: Interest is deducted upfront from the loan amount. This option often requires fewer affordability checks.
- Serviced Interest: Interest is paid by the borrower on a regular basis, typically monthly.
Common Uses of a Bridging Loan
Bridging loans can be used for a variety of purposes, including:
- Property Purchases: Financing a new property while selling an existing one.
- Property Development: Funding renovation or development projects.
- Refurbishment: Covering costs for property improvements.
- Tax Payments: Bridging a temporary cash flow gap to meet tax obligations.
- Auction Purchases: Securing a property at auction without immediate funds.
Why Choose Cornerstone Commercial Finance?
Our experienced advisors leverage their in-depth knowledge of the commercial market to source the best lenders and negotiate optimal deals, saving you time and money.
- Up to 100% Finance Available
- Specialist Broker Team
- Highly competitive rates
- Fast finance and quick decisions
Cornerstone Capital Finance
Our in-house bridging solution, providing fast, flexible short-term finance tailored to your needs.
