Bridging Loans
Looking to secure a bridging loan? Kingsbridge Specialist Finance can help.
When you need short-term property finance it can be stressful! We will help you through the process to get to the right solution. Whether it’s to break a chain in a property transaction, buying property at auction, or finding the extra cash to get a development finished, we can help. We really appreciate the need to work quickly and have a panel of lenders that will work collaboratively to get funds drawn down quickly and as painlessly as possible.
What is a bridging loan?
Bridging loans are a form of short-term finance, typically used to “bridge” the gap between two property transactions where the completion dates can’t be lined up for some reason.
They can also be used when the property in question is not suitable for a long-term mortgage until the borrower rectifies whatever issue exists.
For example, the property may be extremely run-down and requires significant building work to become mortgageable.
What are the key factors involved with Bridging Loans?
- Speed – Getting access to fund is usually extremely quick with bridging loans, in comparison to a normal mortgage process. Sometimes in just a matter of days. This makes bridging particularly useful for purchases at auction, where timescales to complete are tight.
- Bridging Finance Rates – Often expressed as a monthly rate, bridging loans will be more expensive than a long-term, high-street mortgage rates.
- Fees – Lenders will charge arrangement fees, sometimes an exit fee when the loan is repaid and there will be legal and other valuation fees to budget for.
- Exit Strategy – Lenders will want to understand how the borrower intends to repay them at the end of the loan. This could involve selling the developed property or refinancing on to a longer-term mortgage product.
If you’d like to discuss arranging a bridging loan in more detail, please fill in your details below and we’ll call you back.
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Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
Bridging Loans and Bridging Finance are not regulated by the Financial Conduct Authority.
Thank you very much James (speak again in a couple of years 😅)
