When is it the right time to consider bridging finance?

Offa

Increasingly property investors and businesses are turning to short-term finance to bridge a gap in cashflow.

Bridging finance usually runs from 6-12 months and provides a fast and flexible form of funding, which enables investors and businesses to source short-term finance, when they are under pressure for time. 

So when is the right time to consider bridging finance?

• Diversifying a buy-to-let portfolio - to leverage capital
• Short-term business cashflow - from an existing property, funding refurbishments or using as pre-construction finance
• Securing planning permission - to convert a property from commercial to residential use
• Purchasing a property at auction – a bridging loan can be processed in 2-6 weeks versus a traditional buy-to-let mortgage which can take 10-12 weeks
• Raising capital on existing assets – an investor may want to take a second loan against an equity-rich property to acquire another property
• Purchasing a vacant property - or one that needs refurbishing – investors may need to secure a tenant before applying for a buy-to-let mortgage
• Financing a chain break - helps to speed up the purchase of a property
• Consolidating borrowing into one place - until a sale is achieved. Investors may need to sell a property at the end of their mortgage term and require short-term funding to acquire an additional property

Offa provides Shariah-compliant bridging facilities, which range from £100,000 to £2m, with a maximum FTV (finance to value) of 75%. Offering a range of bridging products including residential, commercial, repair-to-let and auction finance, Offa has a substantial funding line and provides finance to all corners of the UK.  

To find out more about our products visit the Offa website at www.offa.co.uk

You can also speak to our friendly team: Tarek or Marie on +44 (0) 121 667 7291 or email enquiries@offa.co.uk.