WHY CHOOSE A BRIDGING LOAN?

WHO COULD BENEFIT FROM A BRIDGING FINANCE?

Bridging finance involves lending to a borrower on a short term basis. The term essentially refers to the financing facility being a bridge to allow the borrower to arrange longer-term finance, or until the relevant investment crystallises. London Property & Finance terms vary dependant on the specifics of each individual case, but are generally along the following lines:

  • First charge loans
  • Interest rates from 0.75% to 1.5% per month
  • Up to 75% LTV of Open Market Value
  • No upfront arrangement fees

The terms mezzanine finance and bridging finance are often used interchangeably. However, mezzanine finance normally involves subordinated (i.e. second charge) debt.

Bridging finance has a wide range of applications. In most instances, a borrower will require bridging finance in order to move quickly and capitalise on a particular opportunity that requires funding in a shorter time-frame than what a mainstream lender can provide.

Bridging finance can provide borrowers with fast access to capital, with a minimum of red tape. Unlike mainstream lenders, LONDON PROPERTY & FINANCE has a very streamlined and un-bureaucratic lending process, which allows a loan to be processed in a very efficient manner.