Why Should I Consider Bridging Finance?

When exploring financing options, it's essential to consider all possibilities, but a bridging loan can be a lifesaver when traditional financing falls short. Additionally, bridging finance can help add to property's value by providing the funds necessary for both light and heavy refurbishment, ultimately increasing it’s value when you sell!

Bridging is a great option when a traditional mortgage is not possible, or when you need the funds faster than a typical mortgage would allow. Some of the most common situations where a bridging loan may be the best solution are listed below:

• Rapid Speed Requirement: Ideal for transactions with tight deadlines – we work with lenders who can get you funds within 7 days in some scenarios!
• No Monthly Payments: Typically the interest on a bridging loan is ‘rolled up’ onto the loan, meaning you have no monthly payments while it is in place, and instead will repay the original loan, lender fees, and compounded interest when you sell the property or when you refinance, giving you more spare money to fund the work!
• Renovation Need: Suitable for both light and heavy refurbishment projects where the property is not in a ‘mortgageable’ state. For example, buying a property with no kitchen/bathrooms, a property that needs structural refurbishment or a property that is in a bad state of disrepair.
• Chain Break: Helps you avoid relying on the sale of another property to give you the much needed funds for something else. A bridging loan can free up that cash while you wait for the property sale to go through.
• Permitted Development: A quick way to start developing your property if you're ready to begin work while you wait for an alternative type of finance to complete.
• Conversion: Useful for projects like converting a house into flats.
• Properties with a short Lease: Properties with a short lease are often cheap, but typical mortgage lenders have minimum requirements when it comes to property leases. Bridging would allow you to purchase the property, extend the lease and then remortgage to a traditional mortgage.
• Auction Purchases: Provides funding before the auction hammer falls, with a possible 28-day exchange deadline.
• 75% Loan to Value: Financing options may allow for higher percentages using additional security.
• New Build Development: Facilitates the purchase of land or the development of new housing projects.

Auction Bridging

Unless you’re a cash purchaser, the big questions when it comes to buying at auction are – Will the funds be there in 28 days? Will I meet the deadline? How competitive will the funds be? With our help – the answers are simple; you’ll have the best chance of meeting the deadline – and with a deal to suit your needs.

With decades of combined mortgage experience and having helped savvy landlords purchase property at auction, you can discover the latest rates to suit your property, including exclusive deals not available on the high street, by chatting with one of our auction finance brokers.

Bridge to let / Refurbish to let

This is a specific type of loan, which allows you to finance the purchase of a buy to let or commercial mortgage property and then has a mortgage product lined up at the end of the bridging term.

The plan is always to get you off that bridging loan as soon as possible and onto a more traditional mortgage, as although bridging can be a vital tool to get you the property, it is only ever a short term solution and keeping it longer than necessary will be expensive!

After a chat to see what your longer term plans are for the property, we will always plan the ’exit’ mortgage alongside the bridging loan for you so that you know a swift exit is waiting for you as soon as you are ready.