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Bridging Finance Loan
One of the faster ways to secure a property is to get bridging finance - it does as it says on the tin, and bridges the gap between the purchase and the mortgage or other funding.
Bridging finance is used in the UK mostly by people buying at auction or for professionals that are buying a property to do up then re-finance. It is a short term finance and usually has fairly high fees - but as it is so fast, it is beneficial for some investors to use it.
More recently people seem to be using bridging finance for deposits ... there is a new style of investing "Off Plan" that took off around 2002 (dangerous in my opinion - read here). Investors want to appear to have a deposit to put down on a property if they are trying to do a no money down or gifted deposit deal of 15% or so, but are applying for a cashback mortgage - or no money down gifted deposit deal. They use the bridging deposit to make the main lender happy - then give it back when they complete and get the cash out.
Bridging Finance and Mortgages
