Incomplete Property Loan
Found a property that you can purchase for a fraction of its potential value? Have you found a property that requires major modernisation but you cannot obtain mortgage finance due to its current incomplete and poor condition? Why miss out on a profitable transaction? Why not purchase and complete the renovations using bridging finance and then either refinance to a lower rate mortgage deal or sell the property at a profit once the work is complete?
Purchase of an incomplete/run down property using bridging finance
Our client purchased a partly renovated house without a kitchen and bathroom. After being refused mortgage finance from his bank, our client asked us to arrange a bridging loan to purchase the property. After renovation, the house could now qualify for a mortgage and our client did this to repay our bridge. This is just one example that a bridging loan could have been used for.