Bridging Finance
Bridging the gap to your next move
Bridging finance is short-term borrowing that gives you fast access to funds when you need to move quickly – whether you’re buying before you’ve sold, securing a property at auction, or funding a property that a standard mortgage wouldn’t finance.
Impartial, Personalised Advice
We’re not tied to any single lender. Our team takes time to understand your circumstances and finds a solution built around you.
Whole-of-Market Access
Benefit from a wide range of lenders, including specialists, giving you more options for non-standard circumstances.
Expert Guidance
Our experienced advisors guide you through the whole process, from first enquiry to completion, for a smooth and straightforward experience.
A Dedicated Expert
You’ll have a single, named point of contact, who knows your personal financial circumstances from start to finish.
How does Bridging Finance work?
Purpose:
It gives you the funds to act at speed – completing a purchase now and repaying once your longer-term finance, usually a sale or a mortgage, is in place. That timing advantage is what makes bridging finance useful when a standard mortgage would be too slow or isn’t yet an option.
The Loan:
A bridging loan is secured against property – either the one you’re buying or one you already own. Lenders will look at the value of the property (or properties) involved and how much you need to borrow. For example, you might use the equity in your current home to fund the purchase of a property that needs renovation before a mainstream lender will consider it – then repay the bridge once the work is done and you remortgage or sell.
Your Exit Plan:
Every bridging loan needs an “exit” – a clear plan for how you’ll repay it, most often through selling a property or arranging a mortgage or remortgage.
Interest and Costs:
Interest rates are higher than a standard mortgage and are often calculated monthly. There are usually arrangement, valuation and legal fees to factor in too.
Term:
Bridging finance is short-term by design – lenders generally expect the loan to be repaid within around a year.
Speed:
One of its biggest advantages is speed. Once approved, funds can often be released within around 5-21 days, and sometimes quicker.
Overall, bridging finance offers a fast, flexible route to funding a property when a traditional mortgage would take too long or isn’t yet available.
Why Choose Bridging Finance?
- Speed:
Bridging finance offers quick access to funds, helping you keep your property transaction moving.
- Flexibility:
Repayment terms can often be tailored around your plans and your chosen exit.
- Buying Before You Sell:
It lets you secure a new property before your current one has sold, avoiding the stress of coordinating both at once.
- Auction Purchases:
With tight completion deadlines, bridging finance can provide the funds you need in time.
- Broken Chains:
If a property chain breaks down, bridging finance can keep your purchase on track.
- Renovation and Conversion:
It can fund a property that isn’t currently mortgageable, until a conventional mortgage can be arranged.
- Substantial Borrowing:
Bridging can open doors to funding that high-street lenders might otherwise decline.
Is Bridging Finance Right For Me?
Bridging finance is a powerful tool, but it isn’t right for every situation. It’s important to weigh the benefits against the risks – and we’ll always be straight with you about both. Here are some points to consider:
- The Cost:
Bridging finance costs more than a standard mortgage. Higher interest rates and fees mean it’s best suited to short-term needs, not long-term borrowing.
- Your Exit Plan:
Bridging relies on a clear, realistic way to repay it. If your exit, for example a sale or remortgage, is delayed or falls through, costs can build quickly.
- Secured Lending:
A bridging loan is secured against property. If you can’t repay, the lender could repossess the secured asset, so it’s essential to borrow with confidence.
- The Timescale:
These loans are short-term, usually expected to be repaid within around a year. It’s a bridge to your next step, not a permanent solution.
- The Alternatives:
Depending on your circumstances, another route may suit you better. This could be a remortgage to release equity, a Let to Buy arrangement, or a secured loan – we’ll help you compare.
Ultimately, whether bridging finance is right for you depends on your circumstances, your timescales and your exit plan. It’s worth seeking expert advice so you can weigh the pros and cons with confidence.
Schedule a Free Consultation Today
Schedule a free consultation today and take the first step towards your next property.