Moorland Finance offers a wide range of flexible and competitive products and services. We specialise in every aspect of commercial lending including commercial mortgages, release of equity to bridging finance in Devon and its surrounding areas.

Bridging loans, also known as caveat loans, serve as a short-term financing option for an individual or a business that will help them acquire the needed funds to progress their business until permanent finance. This can be flexible and can range from anything from 2 weeks up to three years.

Bridging loans are a great, flexible way of lending for numerous reasons. You do not need to provide proof of income and no credit scoring or credit history is required and can be used to buy commercial or residential properties, including Restaurants, Pubs, Hotels and residential homes.

Bridging loans are also a great way to clean up mortgage arrears and are also used to discharge bankruptcy.

Due to the inherent risk associated with the loan they are typically more expensive in order to compensate for this. Bridging loans tend to have higher interest rates which tend to fluctuate around 11-15%. Point and other various costs can also accumulate over the short time period of the loan.

Despite the increased cost, bridging loans are popular as they are a quick way of acquiring sizable chunks of money in a short time period. They are particularly useful to property investors needing 100% of the purchase price as they are based on open market valuations, which mean that the purchase price is generally not an issue.

They are often used as a means for property investors to quickly close in on a property or to prevent a property from foreclosure. They are great as a means of taking advantage of a short-term investment by bridging the gap before permanent financing can be obtained.

When used for this purpose, bridging loans are generally fairly relaxed in terms of repayment. Typically the loan is paid back when the property is sold, refinanced with another lender, the borrower's credit score improves or there is a change that allows a permanent round of mortgage financing.

Bridging loans certainly have their plus and bad sides, but it is a great short-term option for those who need cash with little notice. Their flexibility makes them even more appealing.They aren't always the best option however, so it's always worth seeking financial advice before deciding what course of action you should take.