A bridge loan is a great solution for short-term borrowing. You might hear the terms bridging loan, interim financing, or swing loan—all of which mean the same thing.
However, this isn’t the only reason for taking out a bridge loan. We regularly approve them for a wide variety of scenarios, such as:
We typically secure a bridge loan on the equity in your property or business. This is termed a “charge” and, depending on circumstances, there are first and second charges. These refer to the order in which repayments will be made to us and any other lender should you be unable to repay the loan. If you have an existing mortgage, that will be the first charge and the bridge loan will be the second. While this sounds scary, it’s a legal agreement that has to be taken out for a bridge loan to be approved.
We’ll determine the interest rate, which can be fixed or variable—whichever you prefer. Many people choose to go for the latter, as a bridge loan is typically only for a few months. Fixed rates are available if you prefer, although the interest rate will be a little higher.
You’ll also be able to decide whether to take out an “open bridge loan” or a “closed bridge loan”. The former doesn’t have a fixed end date (although it’s generally assumed that it will be completed within a year). The latter has a fixed date for completion. We’ll discuss your options when we go through the application process.
BRRR Loans have simplified the application process, making it as easy as possible to access funds at short notice. As a responsible lender, we ensure that a bridge loan is an apt solution for your situation. Because the loan is secured on existing equity only, there’s no need to fill in complex documentation or prove income verification.
We’ll speed through the necessary checks, advise you of our impressive industry-low interest rates and fees, and voila! The cash will be available for you before you know it…
A bridge loan is a short-term solution to borrowing money—in other words, it’s an interim solution to “bridge” a financial gap until the funds become available.
Nothing. They’re different terms used interchangeably for the same product.
Interest rates are higher than what you’d pay on a conventional mortgage. If you still have a mortgage on a property you’re waiting to sell, then you need to factor in the costs for both loans.
Ideally, yes, plus we’d prefer it if you have a low debt-to-income ratio as well. However, we’ll do our utmost to service your needs, even if your credit rating isn’t as good as you’d like.
Absolutely! This is a really good use of a bridge loan. We’ll lend at around a 75% LTV rate.
You can use it for virtually any kind of real estate. This includes houses, apartments, multi-family units, land, shops, commercial units…
If approved, you’ll typically be able to access the money within 14-28 days.