Providing your clients with fast, flexible and innovative finance
While the residential property market is generally expected to be quieter this year, we have seen a significant increase in bridging cases as auction purchases rise and investors take advantage of permitted development rights. We’re also seeing a stream of cases where both investors and landlords are converting properties to HMOs or are refurbishing properties to meet EPC regulations.
Bridging finance is an ideal way to finance these plans, and many other scenarios, allowing investors to jump on time-sensitive opportunities quickly.
Speed is often essential for bridging finance cases, and you can rely on our team of award-winning experts to provide you with a first-class service. Not only that, but our specialist divisions also work alongside one another and are therefore well placed to provide exit solutions that are so key to the success of any short-term finance.
Whatever your enquiry and no matter how involved you want to be with the case, we have a service that can be tailored to you and your clients’ needs and can offer access to lenders that aren’t available direct, market-leading exclusives, competitive rates, and enhanced proc. fees.
What is bridging finance?
Bridging finance is a short-term loan secured against property or land and is used to ‘bridge’ the gap, until longer term finance can be arranged, or the underlying security is sold. The key to the success of bridging finance is to ensure that a viable exit strategy is firmly in place upon application.
Types of finance covered in this division.
First and second charge loans on any type of property including:
- Semi commercial
- Land (with/without planning permission).
Regulated bridging finance
Unregulated bridging finance
Typical client scenarios
- Needs to complete on a purchase before their existing property has been sold.
- Is under auction terms with short completion deadlines.
- Is purchasing a property under market value and a quick completion is required.
- Wishes to downsize and release equity in their property to allow them to complete the new property purchase prior to the sale of their existing property.
- Wishes to release equity from a property or land for cash flow purposes on a short-term basis, (e.g., tax bill, divorce settlement or business use).
- Wants to purchase a property to refurbish and it is deemed unsuitable for mortgage purposes with mainstream lenders, (e.g. no kitchen or bathroom, or needs to improve the EPC rating).
- Market-leading rates
- Up to 100% LTV available (subject to additional security)
- Terms from 1–18 months
- Loans up to £50m
- No exit fees (in most cases)
- Interest can be retained, rolled, serviced or a combination of these options
- Funds available in staged payments (where appropriate)
- Lending available to individuals, LLPs, or limited companies
- Light and heavy refurbishment projects
- Auction funding available
- Lease extensions funded
- Lending in England, Scotland, Wales, and Northern Ireland.
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