Bridging Finance
Fiducia Commercial Solutions can provide a range of bridging finance options.
Bridging Finance provides short-term property finance with faster completion compared to traditional mortgage finance.
The ‘Exit’ from the loan is commonly the sale of the asset, or longer-term re-financing.
They can be used for a wide range of projects including: auction purchases / requirement to purchase quickly / refurbishment and development periods / releasing equity to raise working capital.
Finance Options
Fiducia Commercial Solutions can provide a full range of bridging finance options including a closed bridge loan.
Closed Bridging Loans have a fixed repayment date, typically within a few months to a year.
Closed bridge loans are suitable for borrowers who have a specific timeline for the sale of their property and can confidently predict when they will be able to repay the loan.
These loans often have lower interest rates compared to open bridge loans.
Open bridge loans, on the other hand, do not have a fixed repayment date.
They are typically used by borrowers who are uncertain about when their property will be sold.
Open bridge loans provide more flexibility, allowing borrowers to repay the loan when their property is sold.
However, they often have higher interest rates to compensate for the increased risk.
Regulated Bridge Loans
Another bridging finance option is a regulated bridge loan.
Regulated bridge loans are subject to stricter regulations and are typically used by borrowers who are purchasing a property for residential purposes.
These loans are regulated by the Financial Conduct Authority (FCA) and offer additional consumer protections.
Fiducia Commercial Solutions work with a number of lenders who can also provide specialised bridging finance options available for specific purposes.
For example, development finance bridging loans are used to finance property development projects.
These loans provide funding for the acquisition of land or existing properties, as well as the construction or renovation costs.
The application and approval process is relatively quick, ensuring clients have access to funds within a short period of time.
The Fiducia Commercial Solutions team work closely with clients to carefully evaluate their financing needs, repayment capacity, and the specific requirements of their property transactions.
