Bridging Finance
Bridge financing or bridge loans are a type of short-term loan, typically lasting up to 24 months, designed to provide quick access to funds for borrowers who need temporary financial solutions. In essence, they "bridge" the gap when immediate funding is required.
These loans are particularly suited for purposes such as refinancing, purchasing properties at auctions, funding refurbishment projects, and acquiring land or semi-commercial/commercial assets.
Key Product Features
- Speed: Quick access to funds.
- Flexibility: Tailored to meet diverse needs.
- High Loan Amounts: Financing available up to £30m+.
- No Early Repayment Charges: Exit the loan without penalties.
- Interest Roll-Up: No monthly payments, with interest added to the loan balance.
- Generous LTV: Up to 80-100% loan-to-value with additional security.
- Expert Handling: Your clients' cases managed by industry-leading professionals.
- Versatile Usage: Suitable for purchasing or re-mortgaging as a first or second-charge loan.
- Wide Property Coverage: Loans secured against various property types, including houses, flats, commercial units, land with planning, and even uninhabitable or un-mortgageable properties.
How Does Bridging Finance Work?
Bridging loans in the UK are short-term financial solutions, similar to mortgages, secured against property or land and can be used for any legal purpose.
These loans can cover up to 80% of the property's current value or even 100% of the purchase price if buying below market value or providing additional security.
Interest on bridging loans can be structured in two ways: rolled up, where it is paid at the end of the loan term, or serviced, with monthly payments. Loan terms typically extend up to 36 months, offering flexibility to meet borrowers' needs.
