Bridging loan finance continues to grow amidst low interest rates, Brexit uncertainty and mortgage lender caution, Commercial Trust Limited research has found.
The firm looked at the rise of the bridging loan and its uses in the sector, revealing that bridging lending totalled £3.98 billion in the 12 months to September 30 2018 – equivalent to a 21% increase, according to data from The Association of Short Term Lending (ASTL).
Why choose a bridging loan?
As bridging loans are a short-term form of lending, they are usually arranged much quicker than a buy-to-let mortgage, with turnaround times typically around 28 days.
Bridging loans can be used for a variety of reasons, including to:
– Finance property purchase at auction
– Finance renovation work
– Purchase land for future development
– Purchase uninhabitable property
– Purchase stock
– Purchase machinery or IT equipment
According to Commercial Trust, clients can borrow up to 75% loan-to-value on a bridging loan and rates start from 0.49%.
Bridging loan rates vary, however, depending on the purpose of the loan and projected future rental income of the property (established by a valuer).
Read more :- https://www.propertyinvestortoday.co.uk/breaking-news/2018/11/the-rise-and-rise-of-the-bridging-loan?source=newsticker