Richard Butler Creagh  Shares Things to Consider Before Taking Out a Bridging Loan

Welcome to the Richard Butler Creagh blog. Richard Butler Creagh has been in the bridging lending business for many years. Before talking to an expert about your requirements for bridging finance, there are a few other factors to consider. Essentially, bridging loans are designed to be a route to raise money quickly and, as such, should be thought over carefully. Consider these points before applying for your bridging loan:
Understand what is available. When looking to take out a bridging loan, especially for the first time, it is important that you understand how the loan works and what the likely costs are.

Consider how you will repay before taking it out. When selecting the term of your bridging loan, it is easy to go for the shortest possible time frame in an attempt to reduce the amount of interest paid or maximize the net loan. If the loan term ends and you are unable to pay it back as agreed, you will be in default of the loan and may well be penalized financially.

Choosing the right solicitor. Picking the right solicitor is crucial to ensuring the loan completes on time and without issue. Your solicitor will act as the sole liaison between the lender and yourself when it comes to your understanding of the legal terms of the loan. With this in mind, it is advisable that your solicitor is well versed in dealing with bridging loans.

Bridging loans are a great option if you need to move quickly to buy a property. Like any other home loan though, it’s not a debt to be taken on lightly and it pays to speak to a professional mortgage broker so they can provide the right recommendations to you. Whether you are a first home buyer or a sophisticated investor we can assist with a detailed, tailored approach to your investment finance.
Contact Richard Butler-Creagh on the Henley Finance website. Read more about Richard Butler Creagh online here. Like the official Richard Butler Creagh facebook page here and keep up to date with the latest posts.

Richard Butler Creagh Shares How to Finance Property Development Project

Welcome to the Richard Butler Creagh blog. Richard Butler Creagh has been in the bridging lending business for many years. If you’re a property developer, investor, or landlord, there’s a range of finance available to help you kick-start your next project. But even for experienced developers, the alternative lending market can feel large and complex. In today's post, we’ll run through some of the things to think about so you can make the right financial choices.

Commercial Mortgages. Commercial mortgages can be used to purchase commercial property. They work the same way as private mortgages, helping you spread the cost of a large purchase over time. A typical example could be an architect who wants to buy the building where he practices, instead of paying large amounts of rent, he would prefer to own the property, but can’t afford to pay for it outright.

Auction finance. Auctions can be a quick way to get a property at a discounted price, and there are lenders who specialize in auction finance. Once you’ve made the winning bid, auction houses usually require the funds within 28 days, which means you have to move fast to secure funding. There are also lenders who’ll give you finance before you attend an auction so you can arrive prepared with an 'agreement in principle'  this type of arrangement can be particularly useful for experienced and established developers.

Bridging finance. This can mean any short-term funding that helps pay for building and development costs. These two terms have significant overlap and might seem interchangeable, but there are differences between the two. The main thing that determines if you need bridging finance or development finance is how ‘heavy’ the project will be.

As you can see, property development is a complex area, especially when it comes to financing.  whether you’re buying your company’s premises, or growing your rental portfolio best first step to take when determining what type of finance you need is to assess how extensive the project is, how long it will take, and how much it is likely to cost — in both the best- and worst-case scenario. Contact Richard Butler-Creagh on the Henley Finance website. Learn more about the  Bridging and Commercial app here and follow Richard Butler Creagh on our Twitter page. Show your support online!

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