BRIDGING FINANCE

Bridging finance is a short-term loan designed to provide quick access to funds when you need to "bridge the gap" between the purchase of a new property and the sale of your existing one. It’s ideal for situations where time is critical, such as buying a new home before selling your current one, or financing a property development.

How Bridging Finance Works:

Short-Term Solution: Bridging finance is typically taken out for a short period, from a few weeks to a maximum of 12 months, giving you quick access to capital.
Secured Loan: Bridging loans are secured against your existing property or the property you intend to purchase, meaning the lender holds a charge over the asset until the loan is repaid.
Repayment Flexibility: Repayments are often interest-only during the term, with the full amount due to be repaid at the end of the loan term. The loan is usually repaid by either selling a property or securing long-term financing, such as a traditional mortgage.

Key Benefits of Bridging Finance:

Speed and Flexibility: Bridging finance can be arranged quickly, making it ideal for urgent property transactions or time-sensitive opportunities.
Access to Funds: It provides access to capital when you don’t have the time to wait for traditional financing or the sale of a property.
Versatile Use: Bridging loans can be used for property purchases, refurbishments, renovations, or development projects.
Short-Term Loan: Perfect for bridging a gap in funding until a longer-term mortgage or sale is finalised.

Things to Consider:

Higher Interest Rates: Bridging loans generally come with higher interest rates than standard mortgages, reflecting the short-term nature and increased risk for lenders.
Exit Strategy: You must have a clear plan to repay the loan, either through selling a property or arranging longer-term financing, as failing to repay on time can result in additional fees or penalties.
Short-Term Nature: Bridging finance is not suitable for long-term financing. It’s a temporary solution designed to bridge the gap until you secure permanent funding.

How to Apply for Bridging Finance:

Consult an Advisor: Speak to one of our experienced mortgage advisors to understand if bridging finance is the right solution for your needs.
Assess Your Requirements: Determine the amount of bridging finance you need and your exit strategy for repaying the loan.
Submit Your Application: Provide your financial information and details of the property to secure a bridging loan.
Access Funds Quickly: Once approved, the funds can be released quickly to help you complete your property transaction or project.

Is Bridging Finance Right for You?

Bridging finance is an excellent option if you need quick access to funds to complete a property deal or renovation. It’s ideal for situations such as:

Purchasing a new home before selling your current one
Funding a property development project
Completing urgent property transactions when traditional finance isn't available

If you’re considering bridging finance, our expert advisors can help you navigate the options and find the right deal tailored to your circumstances.