Ireland boasts a strong economy with significant growth over the last few years. Dublin has become an important financial centre with more businesses than ever investing and moving into the area.
Following the well-reported challenges in the Irish property market at the last financial downturn, development in Ireland and demand for property, both residential and commercial, has considerably improved. Despite the improving landscape, legacy issues mean that accessing capital remains a challenge for investors in the mainstream market. Novellus’ range of bridging loans in Ireland can help those talented businesses and individuals who are experiencing these issues by assisting with their funding for purchases and projects.
What Is A Bridging Loan?
A bridging loan is a form of short term funding that bridges the gap while investors secure long term finance. For example, Bridging finance can be used when a mortgage may be unavailable, as the property/asset being purchased is not eligible for traditional finance options.
A bridging loan in Ireland is secured by an asset belonging to the borrower, which is usually property. Bridging finance is the preferred option when applicants need access to funding quickly, as the process is usually very fast. As a short term form of finance, the borrowing terms for bridging loans are usually for periods ranging from several weeks to 12 months. However, the borrower has the option to pay back a loan with Novellus, in full at any time within the term without incurring any early repayment fees.
Source: Photo by Diogo Palhais on Unsplash
What Can Bridging Loans Be Used For
Bridging loans have multiple uses, including:
Property Investment and Development – As a growing economy, investors are looking for opportunities in Ireland. Development areas are often purchased quickly and therefore having access to funding fast is important if investors do not want to miss out on potential openings. Bridging loans provide a rapid resolution for property developers looking to invest in Ireland.
Auction Purchases – Auctions provide many good investment properties. However, when purchasing at auction it is necessary to pay a deposit immediately, with the balance due within a month. With a quick approval process, bridging loans provided by Novellus are the ideal funding solution for investors looking to buy at auction. Bridging loans can also be used to purchase uninhabitable property available through auctions which are not eligible for a mortgage, allowing the developer time to make the necessary renovations before securing long term finance.
Buy-to-let – with the countries increasing population, rental property in Ireland is in demand, . Bridging loans allow landlords to purchase buy-to-let opportunities swiftly.
Who Are Bridging Loans Suitable For?
Bridging loans are suitable for anybody looking to invest in property in Ireland who requires short term, fast funding with a clear repayment plan. A high-value asset is necessary to secure the loan.
Bridging loans are also a good option for those developers looking to purchase uninhabitable properties which do not currently qualify for a traditional mortgage.
Bridging loans can also be used for any purchases that require a quick decision, as well as for commercial property developers working on a range of projects, from small to multi-million-pounds investments.
Novellus offer unregulated bridging loans, starting from £50,000.
Whilst most loans with Novellus are based on an LTV 50 – 70%, we will consider LTVs of up to 90% in specific circumstances.
To help discover the approximate costs involved with a bridging loan, use our online bridging loan calculator for guidance.
Who Can Apply For A Bridging Loan?
We offer a stress-free application process, with no fixed criteria or credit committees involved. The best way to find out if you qualify is to simply call us today on 0203 397 4871 or fill out one of our application forms.
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