Bridging finance is a short-term mortgage secured against property. It is individually negotiated and is usually very fast to arrange.
It used to be a very niche product, with lots of negative connotations due to its price. Its main purpose was to allow people to complete on new property purchases before selling an existing home.
Now, however, its use is unlimited. It is a key finance product used wherever mainstream lenders won't, or can't lend. It's a problem solver, an opportunity creator and, in some places, a get out of jail free card.
As for the price - it's negotiable and often nowhere near as expensive as it once was.
The uses of bridging loans are as follows:
Really, however, bridging finance can be used in a multitude of scenarios and for practically any reason.Discuss a scenario in confidence
Bridging finance is individually negotiated via an unlimited number of sources. As a result, there are very few trustable "best buy" tables.
To get the best interest rate and terms you need someone on your side (like us!) who really understands the market, knows a huge number of sources, has plenty of experience and knows how to negotiate.
Bridging finance can be achieved for as low as 3%, for example, via a number of private banks, up to 1-2% per month for more complex and sensitive situations.
We will instantly be able to give you a guide on what a loan to solve your particular situation will cost and will work on your behalf to negotiate the best terms for you.
Bridging loans should only be used as a short term solution and not for the long term.
Every lender will be very interested in how you intend to "exit" the loan - how will you eventually repay it.
The main options generally are:
We work with the entire market place and will take the time to understand you, your plans and your financial position so that we can not only answer the question of how you will exit, but also deliver that plan for you.
Regulated bridging loans are secured against a property which you have, do or will live in, or a property where a family member will reside.
These loans are regulated by the FCA and the rules around affordability apply - i.e can you afford the monthly payments and how will you retain them.
Unregulated bridging loans are secured against every other property type or use - Buy to lets, property developments, commercial assets and so on.
We cover both sides of the market so you can be sure you are getting the correct advice.
Bridging loans are often structured so that the interest rate is a percentage of the loan amount payable on a monthly basis.
For example, 0.45%, 1% or 2% per month.
There are 3 ways to pay this amount:
In this approach, the interest payments are deducted from the gross loan amount and are used to meet the interest costs as they accrue - i.e, you pre-pay the interest from the loan.
Rolled Up Interest
Here, each monthly payment is added to the capital outstanding on a monthly basis and you pay it all back when the loan is repaid.
This approach means that the borrower meets the interest cost monthly as one would with a traditional mortgage.
These structures of the loan are vitally important in terms of the total cost of the loan, the cash flow of the borrower and how much can be secured against the property.
We will work through these to make sure that you are in the best position possible.
The core international bridging finance markets are the United Kingdom, France, Monaco, Spain, Switzerland, Portugal, Jersey and Guernsey, Hong Kong, Singapore and some parts of the US. However, our lender reach and network means we can technically arrange mortgages anywhere in the world.
Bridging finance is always individually negotiated on a case by case basis. We will understand you, your circumstances and your plan and then use our entire lender network to find the right solution based on price, leverage and speed. We will then be right by your side leading the process to ensure the transaction completes as quickly and smoothly as you need.
We have a leading pedigree in the bridging finance market. We have completed some of the largest, most complicated and most sensitive cases internationally. Our reputation in this market us unsurpassed and our transparency and openness when it comes to fees and process is vital. We are on your side.