Bridging Loans & Short Term Lending
Bridging Loans & Short Term Lending - Avail Mortgages
Access to mortgage loans have never been easier.
Need cash fast but don’t want a long mortgage term? No problem. Here at Avail Mortgages we specialise in Short Term Loans, Bridge Loans and Bridge Buy To Let Loans for all kinds of purposes. Maybe you’re awaiting the sale of your house and need a Bridging Loan to buy your new home? Perhaps you have a special event coming up and need a loan to help pay for it? Whatever your reason, our reputable mortgage brokers and mortgage advisers can guide you through the application process, and set up your loan as quickly as possible.
With the help of our handy Bridging Loan calculator and Short Term Loan calculator, and our expert-driven support, we’ll provide you with a range of Bridge Buy To Let Loans, Bridging Loan rates, Short Term Loans and Short Term loan rates from which you can choose, and advise on the best one for you. You’ll be left in no doubt that you’ve picked a winner.
To learn more about our loan, please do not hesitate to get in touch with us today. We provide help for clients in areas such as Leeds, Huddersfield, Bradford, York and Harrogate, so we know that we can help you too.
What Is A Bridge Loan?
If you’ve found your perfect home but there’s a gap between the sale and completion dates which may jeopardise your chances of securing the property, then a bridge loan could be the ideal solution. Bridging loans can help to ‘bridge the gap’ if you want to buy a new home before selling your old one. Bridging loans can also be useful if you want to buy a property at auction, therefore providing you with immediate funds without having to sell your existing house or current property first.
There are two types of bridging loans: Closed bridging loans and open bridging loans.
Closed Bridging Loans
With a closed bridging loan, the mortgage lender knows exactly how you will pay back the bridge loan and the exact date you will be doing this. For example, if you know that you can pay back the bridge loan from the sale of a property and have a completion date for the sale, then a closed bridging loan will be suitable. Or maybe you’re waiting for inheritance money to be released and you have a firm date for when the transaction will be completed? Either way, a closed bridging loan is great in cases of certainty and tends to provide lower interest rates compared to open bridging loans because, with a defined exit strategy, the mortgage lender knows that there is a low risk of the borrower being unable to pay back the loan.
Open Bridging Loans
With an open bridging loan, there is no fixed repayment date, but you will normally be expected to pay it off within one year. Since mortgage lenders consider open bridging loans as more risky, an open bridge loan usually has a higher interest rate than a closed bridge loan would, and the mortgage lender will need to be certain that you’ll be able to pay back the loan.
Regardless of whether you choose an open bridge loan or a closed bridge loan, your mortgage lender will require evidence of your repayment strategy – for example, by using equity from a property sale, or by taking out a mortgage. They’ll also want to see evidence of the new property you are purchasing and the price you plan to pay for it, as well as proof of what you are doing to sell your current property if relevant. You should also have a back-up plan in place in case your repayment strategy fails. There’s a lot to consider when it comes to bridging loans, and a lot that our mortgage advisers and mortgage brokers can help with. Our Bridging Loan calculator can help determine the right loan and Bridge Loan rates for you, giving you peace of mind. Therefore if you’re looking for a Bridging Loan and are located in Leeds or the surrounding areas of Huddersfield, Bradford, York and Harrogate, then we encourage you to contact us today.
What Are Bridge To Let Loans?
Bridge To Let mortgages are another type of Short Term Loan, which allow investors to buy a property that they would otherwise struggle to purchase. Bridge To Let loans usually require an exit strategy in place, so that the mortgage lender knows how the money will be repaid. This may be through selling the property or refinancing it onto another mortgage type.
You can use a Bridge To Let mortgage on a range of properties – including commercial properties, residential properties or a mixed-type, such as a building that features flats and shops. To help pay back the Bridge To Let Loan, you’ll rent out the property.
The great thing about Bridge To Let Loans is that you have quick access to large sums of money, without the need to pay it back immediately. Bridge To Let Loans tend to be fixed term mortgages, for 2-3 years, allowing you time to make monthly mortgage payments from the rent you collect. Bridge To Let mortgages can be approved faster than other types of mortgage loans too, allowing you to get in there before other property investors do and secure your property in no time at all.
Unsure which type of loan is right for you? Trying to decide between lenders? We can source the best Short Term Loans based on your needs and will support you through the loans process – making it clear, quick and easy. If you’re on the lookout for a loan in Leeds or the surrounding areas including Huddersfield, Bradford, York and Harrogate, then get in touch with our Short Term Loans advisers today.
Get In Touch
Trying to decide between a Short Term Loan, Bridge To Let Loan and a Bridging Loan? Wondering what the Bridging Loan rates will be, or what the best Short Term Loans are? Avail Mortgage Brokers can help. We’ll talk you through our range of loans options and find the right one for you. We’ll ensure that you’re fully aware of the interest and repayment structure too. For more information on our Short Term Loans and Bridging Loans, please get in touch with us today.