Bridging loans for residential property can be used for a range of purposes, yet these will of course be related to the property. Some examples of why people apply for bridging finance for capital raise include:

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Home Renovations 

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Often, a residential capital raise bridging loan may be used to raise capital for renovations, repairs or large-scale improvements. This could include large purchases such as a new bathroom, a new kitchen or even an extension all of which can contribute to an increase in the property’s value.

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Pay off Debt

 

Another reason somebody may utilise a fast bridging loan is to pay off any outstanding debts, this is a popular way of consolidating any debts that may be spread out across various accounts. 

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For example, somebody may have debt on a credit card or two or a high interest personal loan, all of this can be difficult to keep up with. For that reason, people may take a capital raise bridging loan to streamline all payments and opt for a lower interest rate in the process.

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Investment into Property

 

Another way that people may use bridging and development finance is to invest in further property. Sometimes, to be reactive when it comes to buying property it is important to have funds fast, bridging loans make this reactiveness possible.

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Home Emergencies 

 

It is rare that people are always prepared for residential emergencies. For example, a boiler breakdown can be detrimental in the winter, yet more than anything, incredibly expensive. Having access to a fast bridging loan can ensure that your family isn’t waiting around for fixes.