BRIDGING FINANCE

Short term loans secured against your property

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Bridging finance is a short-term loan secured against your property until you either sell the property or arrange for a longer term alternative type of finance, such as a buy-to-let mortgage. It is typically used for speed and flexibility and can be used to purchase a property or release equity quickly.

The interest on a bridging loan is normally calculated on a monthly or daily basis and will typically be ā€˜rolled upā€™ into the loan or deducted from it in advance, meaning there is no monthly payment. Some lenders will allow you to service the interest on a monthly basis, subject to affordability checks.

Every bridging loan is different as each clientā€™s circumstances are unique. We will know which lenders to approach in order to find the most cost-effective finance for you.

We will also act quickly when time is of the essence, making the process as stress-free as possible for you.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

We may charge a fee for the advice we provide; this fee will be dependent upon your personal circumstances and will be agreed with you after we have fully understood your requirements. Any fee is usually payable upon successful completion of the loan.

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Whatever your enquiry, we will endeavour to be of assistance to you. Please feel free to call us or complete our enquiry form below.

BRIDGING FINANCE PURPOSES

Bridging finance can be used for many purposes, including:

  • Chain break scenariosĀ ā€“ to fix a broken chain, where the buyer has pulled out and you need to complete on your onward purchase before your current property sells. This ensures you do not lose your onward purchase.
  • RefurbishmentĀ ā€“ to raise funds to enable you to complete cosmetic or structural works to your property.
  • Uninhabitable propertiesĀ ā€“ occasionally properties will come up for sale which require significant refurbishment works to make them ā€˜habitableā€™ or ā€˜mortgageableā€™. Sometimes these properties are heavily discounted. Bridging finance can allow you to purchase the property, complete the required works, and then either sell or obtain longer term finance.
  • Second charge bridgingĀ ā€“ if you already have a mortgage on your property, you can still secure a bridging loan as a second charge, for a variety of purposes including refurbishment, purchasing an investment property, business investment or cash flow purposes.
  • Buying at auctionĀ ā€“ typically you only have 28 days to complete on a purchase which is too short for high street lenders to complete underwriting. Bridging finance can be utilised for speed to ensure you complete by the deadline.
  • Raising funds for business purposesĀ ā€“ we are able to raise capital to inject into a business, as a short-term solution.
  • Below market value transactionsĀ ā€“ if you are able to purchase a property at a discount we have access to lenders who can lend against the value of the property rather than the purchase price. The majority of high street lenders are only prepared to lend against the purchase price, which is where bridging finance can be used. We can raise up to 90 per cent of the purchase price (subject to 70 per cent of the open market value, as confirmed by the surveyor). 100 per cent of the purchase price is also available with additional security.

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