You may need a substantial amount of money for a short period of time, normally two to six months, For example, you may be buying a house and need the money to complete the purchase before your mortgage is ready to be released, or you may wish to buy a new home and need the money to pay for it while your present home is being sold. Bridging loans are secured on your home and can also be used for home Improvements.

Bridging loans can be arranged quickly. There are not many lenders that offer bridging loans as compared to normal long term mortgages. There are principal lenders which are totally independent of all major finance houses, this gives them the flexibility to make decisions fast. Generally there enquiry form asks a few simple questions about the type of property concerned, the value of currently outstanding mortgages, the situation on any planning applications or consents etc.

Some accept self-certification of your income without the need for time-consuming verification. They will then give a decision based on the information you supply. While the bridging loan is being processed, the brief information they require can be confirmed in writing. This should not cause any delays and you can rest assured, once they have accepted the loan, the money will be made available to you - subject only to the information you have given them being correct.

Interest rates are very competitive within the bridging loan market but, as a short term loan, they are naturally higher than those charged on long term mortgages. Loan terms are normally two to six months although variations on these standard periods can be negotiated, if need be. Loans can normally be agreed up to £500,000; larger loans may be made but could be subject to slightly longer delays. Bridging Loans are not just available for residential properties. A first charge bridging loan will replace any outstanding Mortgage and will have a First Charge on your property, this in affect is a very short term mortgage. A second charge bridging loan will have a second charge on your property along side your existing mortgage, this in affect is a short term secured loan.

Short term loans can also be provided for land purchase, renovation, new build, speculative property purchase and even for commercial properties.