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A bridging loan is a specialist loan where you borrow for a short-term to bridge the gap between the purchase of a property and refinance or sale of the property.
Bridging loans are for property purchase, property development and buy-to-let investment property. From Aarnic Bridging Comparison, you can enquire for auction purchase of investment property loan, property development loan, buy-to-let loans and commercial property loans.
Bridging loans are usually fast. Lenders will provide indicative terms within 24 hours. Once you apply, your application can be approved within 24 hours and you can set completion between one week to two weeks.
First charge loan is where Bridge loan only secured against the property.
Second charge loan is where you already have a loan or mortgage and wants to borrow more from bridging lender on the same property.
You can borrow between £100,000 to £25 million. In some cases you can borrow more depending on the security of the property you provide.
You don't need to be a cash buyer to purchase a property at auction. You can use bridging loan or normal mortgage to purchase.
Winning bidder needs to exchange contracts immediately and make 10% deposit on the day of auction. Balance amount must be paid within 28 days, which is not usually long enough to secure a normal mortgage.
Maximum 10 quotes can be requested at a time.