How to Source Finance for Renovation Work
Contents
- To Sell or Renovate?
- How to Finance Renovation Work
- Advantages of a Bridging Loan for Renovations
- Types of Bridging Loan
- Cost of Bridging Loans
To Sell or Renovate?
Despite the recent extension of the stamp duty holiday to get the property market moving, estate agents are warning of rising house prices coupled with a shortage of available properties on the market. Added to that, bottlenecks caused by lockdown means properties are taking months longer to complete than usual, it’s no surprise that people are choosing to stay put and renovate rather than risk the stress of the property market right now.
How to Finance Renovation Work
If you decide to stay and improve your home rather than move, you may need access to additional funding, a bridging loan for renovation work or property development can offer the cash boost you need as Gary Poulton, Founder and Managing Director of Finanta explains: “A bridging loan is usually considered for a short-term period when you’re planning on releasing funding from selling a renovated property for example. Securing funding for your project via traditional lenders can lead to frustration and a breakdown in your plans, the benefit of a fast-bridging loan is that you can get your hands on the cash within a matter of days, meaning that you can start your project sooner rather than later.”
Advantages of a Bridging Loan for Renovations
- Bridging loans are usually very quick to arrange.
- Bridging loans can offer more flexibility in terms of repayment than traditional loans.
- Bridging loans can save you money if you are borrowing to pay for something that you would otherwise pay higher interest fees for.
- A bridging loan can work in your favour by allowing you to get the work done quickly and then selling the property on at a higher value.
- If you pay your bridging loan off as agreed, it can improve your credit score.
Types of Bridging Loan
There are two types of bridging loan: Open – which means there is no fixed end date for the loan to be paid off – this is usually a more expensive option for borrowing. Closed – when there is a fixed date for paying off the loan, for example in the sale of a property.
Cost of Bridging Loans
Costs to consider include administration fees and legal fees. The key criterion is to talk to an expert when arranging your bridging loan. The right advice will ensure that you get the bridging loan that suits your circumstances and pocket.
“The Finanta team are specialists in offering and arranging bridging loans to suit your personal circumstances,” Gary adds “we offer a range of bridging loans and we can access funding for you at market-leading speed, allowing you to make those all-important renovations on your home.”
Get started
Cut through the red tape with our hassle-free application process. We can typically confirm almost immediately whether your loan application is likely to be successful.
