Compare Bridging Finance

What is Bridging Finance?

Bridging finance is short-term finance which can be put in place very quickly, and can be used to purchase a property or for other business purposes. Usual Bridging scenarios are auction purchases, equity release, payment of HMRC bills, and property refurbishment & development, amongst others.

Why would I need Bridging Finance?

Commonly occurring scenario’s which would require a Bridging Loan would be when a property needs to be purchased quickly, or where a property is not deemed to be “mortgage-able” by a more conventional mortgage lender. Alternatively, Bridging Finance can be used as a quick way of releasing equity from property which you (or your company) might already own, for things like tax bills, company cash-flow, or indeed for any other business purpose.

Do I need to pay Interest each month?

No, and that’s a very significant benefit of this type of finance. Provided you have a realistic and viable means of repaying the loan within the term, interest can be included in the loan (“retained”), or added to the loan (“rolled up”).

Does it matter what the loan is going to be used for?

Yes, it does. As responsible lenders, our “panel” lenders are obliged to understand what the monies are going to be used for. We can only assist with bridging loans where the monies are used for business purposes (i.e. not being used for personal use, such as improvements to a main residence), and they cannot be secured by a first charge on the borrowers main residence.

When comparing Bridging Finance options, do not focus purely on the Interest Rate or loan fees. It is essential that the particular “product” is suitable for your circumstances and requirements. As a broker, we add a very significant value to the whole process by making sure you are applying to the right lender, under the right circumstances, and at the right time.

Should you have any further questions, we’d be delighted to talk you through the most appropriate option(s) for you.