Bridging finance is normally associated with a property transaction and covers the timing difference between buying one property and selling another.
Equally, bridging finance can be used to complete a property purchase, development or refurbishment before another line of longer-term finance comes in.
There are now many bridging lenders in the market, which have moved in to fill the gap left by the banks and building societies following the financial crisis. Notwithstanding the competition, however, interest rates can be high and there can be large administration fees payable too.
When contemplating a bridging loan, it is important that you have a clear and certain exit strategy, e.g. refinancing the loan onto a longer-term mortgage or selling the property. If you fail to complete your exit on schedule, the loan could become very expensive indeed and, in the worst case scenario, you could lose the property by falling into default.
Normally, when bridging finance is needed, speed is of the essence and we pride ourselves on only working with reputable lenders that are quick and responsive with their decisions.
Talk to us about arranging a bridging loan for your project or purchase.