Large bridging loans
Large bridging loans are short-term loans used to bridge the gap between the purchase or refinance of a property and the longer-term financing solution. Large bridging loans are typically used for more significant property transactions, such as commercial property purchases or property development projects, where traditional financing may be limited.
The loan amount for a large bridging loan can range from several hundred thousand pounds to several million pounds, depending on the lender and the borrower’s financial situation. These loans are typically secured against the property being purchased or developed and are repaid once longer-term financing is secured or the property is sold.
Due to their size, large bridging loans often require a more thorough underwriting process, including a detailed review of the borrower’s financial situation and the property being used as collateral. Lenders may also require additional security or guarantees, such as personal guarantees or second charges on other properties the borrower owns.
Large bridging loans typically carry higher interest rates than traditional mortgages due to their short-term nature and higher risk. However, they can be a valuable tool for property investors and developers who need to complete a transaction quickly or who need funds to cover a property development project. It’s essential for borrowers to carefully consider the costs and risks associated with large bridging loans and to work with a reputable lender or broker who can provide clear and transparent information about the loan terms and conditions.
How can Sterling Commercial Finance Help?
At Sterling Commercial Finance, we’ve been helping businesses access funding for over 20 years. Get in touch with the team today to see how we can help your business.