Secured and Bridging Loans
Secured loans offer increased borrowing limits and the loan repayments can be spread out over much longer periods. Typically, the amount borrowed is more than £10,000, although you can borrow less money – usually from £7,500.
The term ‘secured’ refers to the fact that a lender will require something as security in case you cannot pay the loan back. This will usually be your home.
Secured loans carry less risk for lenders, which is why they are normally lower in cost than unsecured loans. However, they are more of a risk for you as a borrower, because the lender can repossess your home if you do not keep up repayments.
A bridging loan is a loan to bridge the gap between making a purchase and other funds becoming available. They are often used to buy one property while you wait to sell another.
Bridging loans are usually offered for between 1-12 months, with the loan repayable in full at the end of the term. Unlike other forms of borrowing the monthly interest is often rolled into the loan, meaning there are no repayments to make during the term of the loan.
Bridging loans are a type of secured loan which means you will need to own property, land or another similar high value asset to use them. They are often used by property developers and landlords to fund projects but are becoming more popular with homeowners moving home as well.
For secured loans and bridging loans, we act as introducers.