The Progressive Property Podcast The Problem with Bridging Loans with Toni Gargan and Gary Das
Gary Das joins Toni in this episode for a quick but valuable discussion on bridging loans. They discuss what they are, where they might be useful but also reveal the three main reasons you may not want to use them.
KEY TAKEAWAYS
- Traditionally you would get a mortgage for a property but if you are buying from auction or similar you may need a bridging loan before you can get a mortgage. This is a short-term loan.
- To be accepted for a bridging loan generally, you will be borrowing against assets, but this doesn’t have to be another property or even the property you are using the bridging loan for.
- One of the advantages of bridging is the option to either pay an upfront fee or a certain timescale where you don’t have to pay anything yet.
- There are horror stories surrounding bridging loans, usually when a term has been breached and good advice wasn’t sought out.
BEST MOMENTS
"The key thing with a bridge is how does the bank get the money back in the not-so-distant future?”
“There are certain instances where you’ll use bridging instead of a mortgage”
“The more you know about the properties and the finance side the easier it is to walk in with confidence and do the deals”
VALUABLE RESOURCES
MSOPI – Multiple Streams of Income:
https://www.progressiveproperty.co.uk
ABOUT THE HOST
Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.
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