Bridging Loans

Finance for a range of needs as unique as you are.

Bridging loans are a type of short-term finance that can help bridge the gap between purchasing a new property and selling your existing one. As a Mortgage Adviser, I offer guidance to clients who find themselves in the position of needing to cover this interim period with a financial solution that meets their needs.

Bridging finance can offer the flexibility you need during a property transaction, and with the right advice, you can move forward with confidence, knowing that your interim financing is in place. Let’s discuss how a bridging loan could be an effective solution for your property journey.

Purpose

Bridging loans are designed to provide quick access to funds to purchase a new property before you have sold your current one. This can be particularly useful in fast-moving property markets or when you’ve found your ideal home and need to act swiftly.

Short-Term Nature

Bridging finance is typically set up for a short period, often 6 to 12 months, giving you time to sell your existing property without having to rush into a sale at a potentially lower price.

Two Key Types

‘Closed’ bridging loans have a fixed repayment date, usually when a current property sale is already agreed upon but not yet completed. ‘Open’ bridging loans are more flexible, without a fixed repayment date, useful when you’re yet to finalise the sale of your existing property.

Interest Rates

Bridging loans may have higher interest rates compared to traditional mortgages due to their short-term and flexible nature. Interest is often compounded monthly, adding to the loan balance until it is repaid.

Exit Strategy

It’s crucial to have a clear exit strategy for repaying the bridging loan. This is typically the sale of your existing property, but other forms of repayment should be considered if the property doesn’t sell within the expected timeframe.

Get Started.

As your Mortgage Adviser, my role is to help you understand how a bridging loan could fit into your property transaction strategy. I will support you in assessing whether this form of finance is suitable for your circumstances, considering your ability to service the loan and the associated risks.

I will guide you through the application process, ensuring that the loan structure aligns with your transition from one property to the next. By providing a clear pathway and professional advice, I aim to make your property move as seamless as possible, with a financial solution that bridges the gap to your next home.

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