Similar to a mortgage, bridging finance is used to purchase or refinance a property, as a lender advances up to 75% of the purchase price or value with the remaining balance coming from equity or a cash contribution from you depending on the circumstances.
Due to the short-term nature of bridging loans, which are often outstanding for less than 12 months, the interest is charged on a monthly basis and interest rates are often advertised as such e.g. 1% per month. When calculating your costs, this should be viewed in the context of how long you expect the project to complete.
With this type of finance and there are usually two options with regards to paying the interest rate – you can service it monthly or roll it up which means it will be deducted from the initial advance and repaid at the end via a sale or refinance.
• Funds available quickly
• First or second charge loans
• Personal guarantee required
• Terms from 1-24 months
• Loans from £25k upwards
• Loan-to-value up to 75%
• Clear exit strategy required
• Interest can be serviced or rolled up
• Interest rates from 0.75% per month
• No early repayment fees
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Lostock Office Park,
Ping Finance is a trading name of Ping Finance Limited which is registered in England and Wales under Company Number is 10973327, whose registered address is Ground Floor, Unit B Lostock Office Park, Lynstock Way, Lostock, Bolton, England, BL6 4SG. Ping Finance Limited is also registered with the Information Commissioner under Registration Number ZA447449.