Bridging finance is usually used when you want to buy a property before you sell or refinance an existing property.
It is, in effect, a short term loan rather than a longer term mortgage. Like a longer term mortgage, bridging finance is usually secured on an asset.
Bridging loans are popular with small and amateur investors buying at auction or looking to borrow for a short period of time before selling on or refinancing with a longer term facility after improvements have been completed. They are also used by people looking to buy a new home before they have sold their old one.
We're specialists in bridging finance.
Bridging loans can be very useful but they are costly and usually issued for a fixed period meaning that time is very much of the essence. If you can’t sell the property you are looking to sell within the time you have then your financial situation can quickly become desperate, perhaps forcing you to sell at a loss in order to meet your obligations. Usually the lender will want you to have a robust “exit strategy” before they agree the loan.
Bridging loans are usually much more expensive than typical mortgage rates. There are also likely to be a variety of arrangement fees, redemption penalties and other costs - so be careful!
We thoroughly recommend that when considering a bridging loan you take professional advice from a regulated member of the FCA.
Contact Mortgage Required for a no-obligation chat on 01628 507477.
Download our Free First Time Buyers Guide
Recent posts
Decorating Tips for Selling Your Property
14 days ago
Selling up? It’s important to make your house as appealing as possible to potential buyers. Good decorating can help with first impressions, and increase the perceived value of your property.
20 Budget-Friendly Activities
25 Aug 2023
With the cost of living affecting so many of us, we have made a list of budget-friendly activities and ideas for you.
Moving and Packing Tips for a Stress-Free Move
21 Jul 2023
Moving soon? It's never too early to get organised! Be prepared and avoid unwanted stress by checking out our list of tips to get you ready for moving day.
What is the UK Inflation Rate?
27 Jun 2023
Inflation simply put, is the increase in the price of something over time. The Office for National Statistics (ONS) tracks the prices of hundreds of everyday items and these items are updated to reflect shopping trends.
Debt Consolidation into a Mortgage
20 Jun 2023
We are often asked if it's good advice to consolidate “unsecured” debt (credit cards and loans etc) into your mortgage, the answer is, sometimes.
Parking Rules Explained
16 Jun 2023
When you’re looking to buy a home, and you own a car, you ideally want to know the rules on parking in the area. Parking rules can be confusing, even for the most experienced of drivers! This is why we have written this blog to help you.
Sources of Deposit to Buy a Property
6 Jun 2023
There are several potential sources you can consider when it comes to getting together a deposit to buy a property. Providing proof of the source of your deposit is a key requirement in the application process and will need to be given to both the lender and the solicitor.
More information
Trusted by
