Bridging Finance
Short-term property finance when timing, condition or conventional lending doesn't fit.
Bridging finance can help you purchase property quickly, fund refurbishment, break a property chain or release capital from property you already own.
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Designed for the gap between where you are and what comes next.
A bridging loan is temporary by nature. The property, borrowing requirement, timescale and intended exit are considered together when the facility is structured.
Where Bridging Finance can help
Bridging loans are often used where a property transaction needs to move faster, the property isn't yet suitable for standard lending, or capital needs to be released for another purpose.
Property Purchase
Secure a property where the timescale or circumstances don't suit a conventional mortgage process.
Auction Purchases
Meet short auction completion deadlines where funding needs to be arranged quickly.
Refurbishment
Purchase or refinance property requiring works before it can qualify for longer-term borrowing.
Breaking a Chain
Complete a new purchase before an existing property has sold, with the later sale forming the exit.
Capital Raising
Release equity from property for business purposes, tax liabilities or another investment opportunity.
Refinance
Replace existing borrowing or provide additional time while a longer-term solution is arranged.
What are you looking to do?
Select a scenario to see where bridging finance may fit into the transaction.
Standard Purchase
Bridging can provide a short-term route to completing a property purchase where speed or circumstances make standard mortgage finance difficult.
Once the purchase has completed, the loan is normally repaid through sale or replacement with longer-term finance.
Auction Purchase
Auctions generally require completion within a fixed and relatively short period after the hammer falls.
Bridging finance is often used because the transaction can be assessed and structured around those tighter completion timescales.
Renovation
Some properties are unsuitable for standard mortgage lending until essential works have been completed.
A bridge can fund the acquisition or refinance while works are carried out, followed by sale or refinance once the property is in a suitable condition.
Break a Property Chain
A purchase opportunity doesn't always wait for your existing property to complete.
Short-term funding can potentially bridge that timing gap, allowing the purchase to complete before the existing property is sold.
Raise Capital
Equity held within property may potentially be released without selling the asset.
Depending on the circumstances, funds could be used for business purposes, tax commitments, property investment or another opportunity.
How Bridging Finance Works
Because the loan is short-term, both the initial transaction and the eventual exit need to make sense from the outset.
The Requirement
Establish the property, funding required and the reason short-term finance is needed.
Assessment
The lender reviews the security, valuation, borrower and proposed exit.
Completion
Once valuation, legal work and lender requirements are satisfied, the funds are released.
The Exit
The facility is repaid from sale, refinance or another agreed source.
How will the bridge be repaid?
A credible exit strategy is one of the most important parts of any bridging application.
Sale of the Property
The property is sold and the sale proceeds repay the outstanding bridging facility.
Refinance
Once the property or borrower meets longer-term lending criteria, the bridge is replaced by a mortgage or commercial facility.
Other Defined Repayment
In some cases repayment may come from another property sale, investment event or clearly identifiable source.
What determines a bridging loan?
Bridging lenders look at more than just an applicant's income. The overall transaction and the route to repayment are central to the decision.
Property Value
The current value of the property and the amount of equity available.
Loan Requirement
How much is required relative to the value of the security.
Property Condition
Whether works are required and how substantial those works are expected to be.
Timescale
When the facility is required and how long it is expected to remain outstanding.
Exit Strategy
How and when the loan is expected to be repaid.
Short-term finance needs a clear plan.
We assess the transaction, funding requirement and proposed exit before approaching suitable lenders, then remain involved through valuation, legal work and completion.
Speak to an Advisor
Have a funding requirement you’d like to discuss? Speak directly with one of our commercial finance advisors.
We aim to respond to enquiries
within 2 working hours.
Have a funding requirement you’d like to discuss? Speak directly with one of our commercial finance advisors.
Book a quick, no-obligation consultation with one of our commercial finance specialists — we’ll help you find the most suitable solution for your business.