Beat Finance has explored the use of bridging finance to help direct customers to the opportunities they may be missing. Bridging finance make you a cash buyer.
Often an opportunity to buy a dream home comes up before you have sold your current residence. A bridging loan can remove stress of chain breaks, sellers pulling out and many other unknown factors that effect a buyer.
We find that clients choose a bridging loan while their house is being sold, for the following reasons.
Bridging loans make you a cash buyer.
Typically, this gives 12 months to market it, declutter to enhance it’s saleability, optimise sales value and sell the property
It removes the stress and worry about buyers pulling out.
Even better you should be able to raise more funds
Your client calls and tells you he's bought the property at auction. He needs a mortgage and says he need it done in 28 days. Sorry, I can't do that in time, but I can introduce you to Beat Finance.
We arrange bridging loans quickly and work with the introducer who does your mortgages, so we can deliver a planned exit and deliver funding quickly.
Any type of property considered even if it needs refurbishment.
Often a client may have the ability to buy a property at a good price, but doesn't have money to purchase the property.
These properties are often distressed sales or bank repossessions.
Beat Finance can help get mortgage loans on properties like these.
Often we see bridging loans used when clients are looking to downsize into a different or smaller property.
Bridging gives you the benefit of potentially raising more funds as the property that the loan is secured on is likely to be more valuable than the one you are purchasing.
This extra funding can often pay for a renovation or refurbishment of either property, moving costs or other fees that you will incur as part of the process.
Often things can happen that you have no control off. In easy language, what would you do if your buyer pulled out and you were due to complete on the home you and your family had set their heart on. This we call a chain break and can be solved by a bridging loan.
The interest is deducted in advance and a lump sum payment is made at any time up to 24 months. Bridging does not require any affordability calculations. As a result funding can be arranged quickly.
The industry average is 3 to 4 weeks, but experienced bridging brokerages can complete a bridging loan process in 2 to 6 weeks.
We offer free advice and never ask for any upfront fees.
Life can throw all sorts of challenges to us, and we are often introduced to clients to help them overcome challenging situations.
Do you have clients with any of the
following :
· An unexpected tax bill for a business or an individual
· Does a clients family have an IHT bill to settle before probate is granted.
· Do your clients need to arrange specialist care for parents or family members that need short term funding.
· Joint owner of property is declared bankrupt
With many of these examples you may need time working with a partner to reorganise finances.
Bridging can give you the time needed to rebalance and adjust your personal life.
Often clients find properties that need more than a light refurbishment in fact the development is so significant and its condition is so poor that there is no possibility of a mortgage.
Uninhabitable property may not be wind and watertight, it lacks basic facilities or is listed, or it has structural issues. It's important to work with a broker who has access to the funders for this type of property.
Bridging finance allows you to buy a property and get it ready for sale quickly, or can be combined with development finance to create a winning combination.
This type of financing is used by developers regularly as both working capital and as a site acquisition tool.
As interest is retained there is no need to put pressure on cash flow so you have 12 months to develop the property up to the standard needed to sell on or to arrange refinancing or arranging a development exit loan are all solutions we can work with you and your client on delivering.
As the market changes, there are plenty of opportunities to acquire, improve, and sell properties at a profit. Experienced developers use bridging finance to achieve this, but what if you're new to this market?
Beat Finance gives you access to this financing source. We can also use UK properties to help you buy or develop property overseas.
No matter who you are, bridging finance can be a reliable short-to-medium term credit source. Terms up to 2 years can be made available.
Think about it this way: Where clients have substantial assets that could cover the cost of purchase and development, they may not want to sell those assets if their latest purchase is a flip.
Bridging finance allows a range of security to be used to secure funding.
Remember—interest deducted in advance means you have no debt to service while the project moves forward, leaving you with fixed costs and a clear vision of profitability.
Interest-only mortgages need to be repaid at the end of their term as they are, by their very nature, loans without capital repayment. Most people sell their home or use other assets to repay them, but this may not always be the most cost-effective solution for your clients.
Repayment can be by many ways, but timing may not be right if you're using stocks and shares. The sale of the property may not be appropriate as onward purchases may have not been completed or the property may be taking longer to sell than expect.
Bridging loans can be used to settle all or part of the money needed. This gives the client time to plan, with an extra 12 months.
Let us know what you want by contacting us.
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