Bridging Finance
Unlock your next property with bridging finance
If you’re buying property but having issues financing it, bridging finance could be the solution. A bridging loan provides short-term finance, which you can use instead of a traditional mortgage until you can sort out alternative funding arrangements.
Maybe you’re buying your next home, but there’s a delay or break in the chain, or perhaps you want to buy a property quickly, for example, at auction. Both these scenarios, plus many more, could be appropriate for bridging finance.
Securing bridging finance
Since bridging finance is a short-term loan, it is typically a more expensive form of financing. Also, there is a smaller lender pool compared to traditional mortgages. So, it’s worthwhile to use a broker to secure bridging finance. We can access a wide range of bridging loan deals from private and specialist lenders, many of whom you couldn’t approach directly. Having more lenders to approach means we can find the most competitive deals. We’ll advise you on the most suitable option, negotiate the loan terms and manage the application process on your behalf. With our input, the process will be quick and seamless, and the finance will be right for your needs.
For help securing bridging finance, get in touch for a free, no-obligation chat with a mortgage adviser.
Bridging Finance FAQs
What is bridging finance?
Bridging finance, or a bridging loan, is a short-term loan designed to provide immediate cash to ‘bridge’ the gap between the need for capital and the availability of a longer-term funding solution.
What is bridging finance used for?
Bridging loans are used to bridge a financial gap when funds aren’t immediately or readily available. The scenarios that this might apply to include the following:
- Purchasing a new property before selling your existing one.
- Buying a property at auction and having a short window to secure the property.
- Completing renovations on a property to increase its value before selling.
- Purchasing an unmortgageable property, for example, one with no kitchen or bathroom.
- Buying land to self-build a property.
- Managing business cash flow.
How long does it take to arrange a bridging loan?
Bridging finance is designed to be quick, so it usually takes five-21 days to complete. If you have a specific deadline, using a broker can help streamline the process and minimise delays.
What are the interest rates on a bridging loan?
Interest rates on bridging finance are higher than traditional mortgages. However, you don’t have to make monthly interest payments. Instead, you repay the loan and interest in one lump sum. If you pay off your bridging loan early, you’ll only be charged interest for the months you had the loan.
Do you need a deposit for a bridging loan?
Most bridging loans require a deposit of 25-40%. However, it is possible to get a bridging loan without a deposit, but you’ll need other assets to secure the loan.
