Looking for a bridging loan?
When short-term finance is required, we act fast. We know the unique time constraints when buying a property, land, or securing an auction property.
Our process is seamless throughout with a focus on specialist advice, flexibility and complete transparency.
Each facility being tailored to you with a focus on providing a flexible approach to overcome potential obstacles that traditional lenders may have.
Frequently Asked Questions
A bridging loan, as the name suggests, is a short term loan (1 month to 2 years terms) which can be used to ‘bridge the gap’ where you want to buy a new home but have not yet been able to sell your existing home.
Bridging loans can also be used for buying a property at auction, where you will have to pay for the property within 28 days but can’t raise a normal mortgage within that time. If the property you purchase needs renovation, a bridging loan can cover this and allow you to remortgage the property on normal terms once the renovation is complete.
Bridging Finance can be used for
- Cash flow easing and capital raising
- Development project finance
- Purchase of main residence
- Refurbish or extend property
- Circumventing a broken property chain
- Debt consolidation
- Purchase of BTL (Buy to let) property
- Any other investment opportunities
There are two basic types of bridging loans, each of which is designed to satisfy certain criteria. These are shown below:
- Closed bridge: with this type of loan, the borrower will be given a set date when the loan will have to be repaid. For example, the borrower is looking to purchase a new property and has already exchanged to sell their existing property with the completion date fixed. The sale of that property will become the vehicle to repay the bridging loan.
- Open bridge: The borrower sets out a proposed exit plan to repay the bridging loan but there is no fixed date set at the outset. There will of course be a clear cut-off point where the bridging loan has to be repaid but the borrower has flexibility to do that within the overall repayment term set for the loan.
- Lender is provided with summary of the reasons for wanting a bridging loan and given a statement of the security that will be available to secure the loan and the strategy to be used to clear the bridge by end of term.
- Lender receives evidence (if applicable) of the new property purchase and proof of the price to be paid
- Lender will issue an offer letter which will state the terms and conditions applicable to the proposed loan.
- Lender will generally instruct a valuer to provide a valuation report on the property and sends the offer documents to your solicitor. Your solicitor will check the terms of the loan and advise you on how to proceed.
- If everything is acceptable to you, you sign the papers for the loan.
- Once that is done, the lender will release the funds to your solicitor who will arrange legal completion.
Key Features & Criteria
Application Process
Bridging Finance can be used for
How we can support you?
Our knowledge of the lending market allied to our relationships with a wide variety of lenders means that our clients can save valuable time and effort in dealing with us rather than making multiple applications themselves.
Clients are kept up to date every step of the way as we aim to provide them with the best funding solutions as quickly as possible.