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Bridging loans in Spain: Your short-term financing solution

Bridging loans in Spain are a flexible alternative to traditional mortgages, offering short-term financing solutions. They are perfect for situations requiring quick access to funds, such as real estate transactions.

What are bridging loans?

Bridging loans are short-term loans designed to “bridge” the gap between immediate financial needs and future funding. You might use these loans when buying a new property before selling your current one or managing other urgent financial needs.

Key features of bridging loans in Spain

  • Loan Amounts: Typically exceed €500,000.
  • Loan-to-Value (LTV): Up to 65%.
  • Terms: Ranges from 1 to 3 years.
  • Interest Rates: Start as low as 0.7% per month, depending on your profile.
  • Repayment Flexibility: You don’t need to make capital repayments during the loan term. Instead, you can pay interest monthly, yearly, or roll it up to maturity.

Case Study: Securing a €10 million loan

Recently, a client sought a €10 million bridging loan, covering 50% of the purchase price for commercial use over 12-18 months. Initially, they were offered a 13% per annum rate from a private investor. However, they approached us to find a better rate. With our expertise and extensive network, we secured more competitive terms for them.

Benefits of bridging loans

  • Fast Access to Funds: Ideal for urgent financial needs.
  • Flexible Repayment Options: Tailor repayment to fit your situation.
  • Competitive Rates: Secure lower rates through specialist brokers compared to private investors.

Why opt for bridging loans in Spain?

Bridging loans in Spain offer several advantages:

  • Real Estate Transactions: Quickly obtain funds to buy property.
  • Business Needs: Access capital for business growth or operational costs.
  • Personal Financial Situations: Address short-term cash flow gaps.

Learn more about financing solutions

For more detailed information about bridging loans in Spain and other mortgage products, visit our website or contact us directly. Our expertise and extensive network of lenders ensure that we can provide the best financing solution tailored to your needs.

Katherine WalkerdineFounding Partner / Business Developer BA (Hons),Cert PFS,Cert CII (MP)

Living in Spain since founding Mortgage Direct in 2006. Prior to that, she had her own practice in London for fifteen years advising high-net-worth clients on their investment and taxation planning. An array of UK and Spanish qualifications.

Mortgages taken out in currencies other than the currency in which you earn are considered Foreign Currency Mortgages. Changes in the exchange rate may therefore increase the equivalent value of your debt. Under the Mortgage Law 5/2019 banks in Spain have introduced mechanisms to protect consumers from exchange-rate risk. For more information, please speak to your broker.

Mortgage Direct, S.L. is a company registered in the Registro de Intermediarios de Crédito Inmobiliario del BdE with the nº D108.

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