If you are dependent on the profits you make from your property portfolio, it makes sense to look for the most efficient ways to buy and sell. Like any business, you want to minimise your costs and maximise your return. One of the ways you can do this is to be as economical as possible when it comes to bridging finance and loans.
If you are regularly buying and selling property, you'll be familiar with the closed bridging finance and loans market. A closed bridging loan allows you to buy your next property even if you haven't yet received the money for the sale of your previous property. For a closed bridging loan to work, you must either have exchanged contracts on a property you are selling, or take out a mortgage to buy your new property, which you can then re-mortgage as soon as possible. There are several problems with the traditional closed bridging finance and loans method:
• Cost – because you will be taking out a mortgage to purchase the property and then a re-mortgage to release any additional value the property holds, you will be paying out for two financial products. Each will require a valuation report, and a solicitor to handle the legal paperwork. You will have to pay these fees on both occasions. You may also have to pay and extra fee, or a higher interest rate in order to secure an initial mortgage that doesn't carry any redemption penalties; you'll need this so that you can pay the mortgage off as soon as your re-mortgage comes through.
• Time – even with a straightforward purchase, it can take some time to arrange both a mortgage and a re-mortgage. You have to move at the pace of your broker and the mortgage lenders, and you have to wait for two sets of funds to clear before you can see any cash come into your bank account. If you're eager to get on with re-development, or you want to use the cash as a deposit on a new property, you have to adapt your timetable to fit in with everyone else that's involved in your purchase.
If you could find a faster alternative when it came to arranging your bridging finance or loan, would you take it? Whether you're a first-time property developer or you have a significant portfolio already, it's worth looking at a faster, cheaper short-term bridging finance option.
Faster Bridging Finance has developed a new approach to closed bridging loans that saves you time, money and hassle. Developed specifically to help those who invest in property occasionally or who have large property portfolios and want to be able to get cash out quickly, the service uses a dedicated mortgage broker and conveyancing solicitor so that there are no hold-ups, just a straightforward bridging deal. To find out more about how Faster Bridging Finance can help you, order your Free report now.