Bridging Finance is available through our Business Partners.
What is a Bridging Loan?
Bridging Loans are a way of borrowing funds in the short term.
They “bridge the gap” if you need to buy one property before selling another. Unlike Mortgages, Bridging Loans can be arranged quickly if speed is important.
Typical cases that we can assist clients with obtaining a Bridging Loan are below:
Property Purchase (Residential/Commercial)
Deposit for Investment Property
Buy and Renovate
Land Purchase
Auction Purchase
Raise funds to extend lease
Time sensitive deal
Short-term business finance
HMO refurbishment
Avoid Repossession
Short-term cash flow problems
How do they work?
You can borrow between £50,000 and £10 million with a bridging loan. The amount depends on how much equity you have available.
Typically the maximum loan including interest is limited to 75% of the value of the asset.
The loan would then be secured on the property or across multiple properties to raise the required funds.
Bridging Loans are not directly assessed based on your income.
What are the Pros of a Bridging Loan?
Speed of the release of funds
Clients can borrow large sums of money if needed.
Repayment terms are flexible to fit in with your plans and strategy for repayment
You can typically secure finance on properties that conventional lenders wouldn’t permit.
What are the Cons of a Bridging Loan?
They are a secured form of borrowing so failure to meet repayments could mean that your property would be forfeit.
Interest rates tend to be higher due to the fast and flexible nature of the finance
Bridging loans do incur additional fees and charges. Additionally there are fees associated with application. (Any fees to arrange a Bridging Loan will be discussed prior to submission of the application)