Expert Bridging Finance advice to suit your needs

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.

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.

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.

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.

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.

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.

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.

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.