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Understanding Bridging Finance and its benefits

Bridging finance is a short-term loan that provides access to funding when it is needed most, typically lasting no longer than 12 months, though it can extend to 18 months in certain circumstances. These loans are designed to raise funds for any legal purpose and generally require a clear repayment strategy. While the interest rates and fees may seem high compared to standard residential lending, the benefits of a short-term loan can be significant. They enable you to secure the place of your dreams, renovate a property for quick resale, or perform essential repairs to make a property habitable and eligible for mainstream lending.

Chartwell customers commonly use bridging finance for:

Chain breaking or repairing

Bridging finance can help break or repair property chains, ensuring that your property sale or purchase proceeds without delays caused by other buyers or sellers in the chain.

Auction purchase financing

Secure the funds you need quickly to capitalise on property auction opportunities and complete purchases quickly.

Downsizing for a more manageable home

Secure the funds needed to buy a new, smaller property before selling your current one, allowing for a smooth transition and preventing the stress of moving.

Settling probate cases

Bridging finance can provide the necessary funds to settle probate cases swiftly, ensuring that estate matters are resolved efficiently and beneficiaries receive their inheritance without delay.

Injecting cash flow into a business

Access immediate funds to inject into your business, facilitating growth and enabling expansion plans.

Refurbishments or modernisations

Obtain funds for refurbishing or modernising your property, enhancing its value and making it more appealing to potential buyers or tenants.

Below market value purchases

Access funds quickly to take advantage of below market value property deals, allowing you to make smart investment decisions and secure profitable opportunities.

Business restructure or management buy-outs

Use bridging finance to facilitate business restructures or management buy-outs, providing the necessary capital to implement strategic changes and drive organisational growth.

Portfolio restructuring

Use bridging finance to reorganise your property portfolio efficiently, ensuring smooth and streamlined transactions.

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How Chartwell Advisors Can Help You with Bridging Finance

At Chartwell, our expert advisors are dedicated to guiding you through the complexities of bridging finance, ensuring you secure the best solution for your short-term funding needs. We understand that every financial situation is unique, and our personalised approach means we take the time to understand your specific requirements and goals. From the initial consultation to the final repayment, our advisors will:

Assess Your Needs: Evaluate your financial situation and the purpose of the loan to recommend the most suitable bridging finance options.

Provide Expert Advice: Explain the intricacies of bridging finance, including terms, interest rates, fees, and exit strategies, so you can make informed decisions.

Navigate the Application Process: Assist you in gathering the necessary documentation and submitting a strong application to increase your chances of approval.

Secure Competitive Rates: Leverage our extensive network of lenders to find competitive rates and favourable terms tailored to your needs.

Offer Ongoing Support: Provide continuous support and advice throughout the loan term, ensuring you remain on track with your repayment strategy.

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What our customers say

See what real customers have to say about their experiences with the Chartwell Funding team

Read all our testimonials on Trustpilot
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Great remortgage experience
Duncan and his team worked extremely hard to ensure we could get the best fixed rate available for our remortgage. We felt that we as clients always came first and that Duncan and Chartwell were constantly scanning the horizon on our behalf. Very happy to recommend them to anyone looking for an expert broker to help them with any sort of mortgage need.

Chris

5-stars on Trustpilot
Great service by Jordan and Daniel
Jordan has been excelent in sorting out our insurance, not only we saved £10 each month, but we got an upgraded plan. Also worth mentioning Daniel, our mortgage advisor. Always proficient in securing the best rates and very patient ensuring that we understand everything.

Mr Gherman

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Fantastic service
Fantastic service. Great communication. They made everything clear and simple. Great company - I wouldn’t go anywhere else now!

Joe Thurston

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I had a great experience!
I had a great experience with Chartwell Funding, everyone one was so helpful and informative. I always had a lot of questions and everyone happily helped with no bother. A big thank you to Dan and Star who made the process easy for me and always went above and beyond to help me through it. Thank you so much, I really appreciate it.

Cheryl

5-stars on Trustpilot
Amazing experience with Chartwell
Amazing experience with Chartwell, Duncan and the team really helped me secure a good mortgage for my first home. They were all welcoming, quick with replying and even checked up on me after it went through. I can't thank them enough for making it all feel easy!

Jordan

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Fantastic and trustworthy company
Fantastic and trustworthy company. Once again Matt and his team guided me through the mortgage process checking in throughout and answering any query with efficiency.

Mrs Murray

Frequently asked questions

Here are some of the most common FAQs we hear about bridging finance.

What is bridging finance?

Bridging finance is a short-term loan designed to provide quick access to funds, typically used to bridge the gap between the sale of one property and the purchase of another. It can also be used for other purposes such as property renovation, auction purchases, or settling probate cases. These loans usually have higher interest rates and are meant to be repaid within a short period, usually within 12 months.

When should I consider using bridging finance?

Bridging finance can be useful in various situations, such as when you need to buy a new property before selling your current one, require funds quickly for a property auction purchase, or need to complete a renovation project to increase a property's value. It's also helpful in breaking property chains or resolving urgent financial needs that traditional lending can't meet in time.

How does bridging finance work?

Bridging finance provides you with a short-term loan secured against your property. The loan amount and interest are typically repaid when you secure longer-term financing, sell the property, or achieve the specific financial goal for which the loan was taken. The application process is faster than traditional loans, with funds often available within days.

What are the eligibility criteria for bridging finance?

Eligibility for bridging finance depends on several factors, including the value of the property used as security, your exit strategy (how you plan to repay the loan), and your overall financial situation. Lenders will assess the property's value, your credit history, and your ability to repay the loan within the agreed timeframe.

How much can I borrow with bridging finance?

The amount you can borrow with bridging finance typically ranges from £25,000 to several million pounds, depending on the value of the property used as security and the lender's criteria. Lenders usually offer up to 75% of the property's value, although this can vary.

What are the costs associated with bridging finance?

Bridging finance costs can include interest rates, arrangement fees, valuation fees, and legal fees. Interest rates for bridging loans are higher than traditional mortgages due to their short-term nature and associated risk. It's important to fully understand all costs before proceeding with a bridging loan.

How quickly can I get a bridging loan?

One of the main advantages of bridging finance is the speed at which funds can be made available. Once your application is approved and all necessary documentation is provided, funds can often be released within a few days. This makes bridging finance an ideal solution for urgent financial needs.

What is an exit strategy in bridging finance?

An exit strategy is a plan for how you will repay the bridging loan at the end of the term. Common exit strategies include selling the property, refinancing with a long-term mortgage, or using funds from another financial event. A clear and viable exit strategy is crucial for securing a bridging loan.

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