When looking into financial support, the duration of a long-term loan can be overwhelming or unfeasible for some borrowers. For this type of situation, a bridging loan may be a great alternative for those looking to arrange a quick, short-term financial boost.
Bridging loans can be obtained quickly and have different conditions than more traditional, long-term loans. Simply put, these types of loans are essentially very short-term mortgages which also need to be secured with property like a traditional mortgage would. Although this type of loan is structured like a mortgage, funds can be used for a variety of projects and purposes.
Fast Property Purchase
Recently, more and more investors have been using bridging loans or short-term funding to help quickly complete transactions. The speed in which these short-term loans areapproved and dispersed allows clients to be considered “cash buyers”, which enables them to further negotiate discounts on their purchases.
EuroGuide can provide clients with funds in as little as seven working days and even sooner in urgent situations. This gives clients a unique opportunity to purchase repossessions, distressed sales and equipment, or assets from vendors looking to quickly sell. Terms can vary from one day to six months, allowing clients the flexibility they desire.
Property Refurbishment
EuroGuide specialises in lending funds against properties that require refurbishment or renovation prior to refinancing. Traditional long-term lenders often utilize 100 percent retention on mortgages for properties that have no bathroom, no kitchen, or require extensive renovations.
We are also able to assist with funding conversions on properties. Many clients will complete multiple transactions for this purpose each year, helping to develop portfolios or generate profits from sales of refurbished properties. The speed in which we can generate these short-term loans often secures deep discounts for property buyers.
Chain Breaking
Bridging loans through Euroguide can also be used when looking to move to a new residence. If a client is unable to sell his or her current home but wishes to purchase and move to a new property, a short-term loan can be granted against the current property.
This will allow clients time to transfer their current residential mortgage to their new home. Once the old property has sold, one will simply redeem the bridging loan from that sale. This type of short-term loan is also used to release funds from equity while selling or refinancing refurbished properties so clients are free to move to their next project.
Fast Capital Raising
If a client has property security, EuroGuide is able to raise funds quickly while a property is being refinanced or sold. Uses for this type of financing include temporary cash flow problems, VAT, or tax payments and assistance funding stocks or other business ventures.
We can fund multiple transactions when immediate funds are released into probate all while the property is being sold in its normal manner. This structure allows clients to attract the best possible pricing and use of this funding is becoming more recognized by professional advisors across the board.
Auction Funding
When it comes to purchasing property at auction, it is important to have the confidence and peace of mind knowing that the necessary funds for these purchases are available.
We have created a solution to this problem by offering client pre-agreed Decisions in Principle before and during an auction situation as well as the auction has closed.
Auctions traditionally give winners four weeks to complete transactions and we can provide financial assistance while long-term funding is being established or the property is being refurbished.
When long-term loans are not an option and quick financial assistance is needed, EuroGuide can provide clients with quick, short-term, bridging loans for a variety of projects or situations. These loans can be secured in as little as seven business days and allows clients to receive additional discounts on properties and other purchases with their “cash buyer” status.
Whether funds are needed to purchase and refurbish properties, provide time to transfer a traditional mortgage to a new property or to make funds available at auction, we have clients covered for their short-term loan needs.