Bridge Financing For Home Purchase

Bridge Financing For Home Purchase

There are many reasons why you might need a bridge loan. You may be looking to purchase a new house and have not yet sold your existing home, or you are looking to purchase an investment property using the equity in your current home. Other reasons might include renovations or extensions that require short-term finance.

Special features of what we offer include:

• Bridge loans from £50,000 to £15 million

• Residential and commercial bridge loans

• Terms of finance from 1 to 36 months

• Interest roll up schemes

• Bridging loans for individuals, limited companies, sole traders and partnerships

• Whole of market service - we work directly with UK bridging lenders

• Lowest bridging loan rates - Access to leading bridging loan offers

• Fast turnaround - speak to us today if you need to move quickly. 5 to 7 days possible.

To investigate your bridging loan interest rate options.

Call our team on 0117 313 6058  or fill in our call back form.

Bridge Financing For Home Purchase

Bridge finance is being used across the UK with greater frequency. More people are starting to recognise how they can apply short-term loans in funding residential property transactions.

This increasing popularity is being driven by increasing use of bridging loans for residential and commercial property transactions, auction purchases and renovation and building development projects.

Increased confidence in the housing market has been a major driver of this growth with investment in building projects and buy to let schemes fuelling demand, as they provide investors with the opportunity to renovate and refurbish properties that could not have been financed through standard mortgage finance.

Bridging finance has become more popular in the last few years with an increasing number of people taking advantage of the flexibility that it provides both in residential and commercial funding.

What is bridging finance?

In simple terms a bridging loan provides fast and flexible finance when time is of the essence providing borrowers with a fast cash injection, which would otherwise not be available through more traditional finance routes.

A bridging loan is a direct route to quick finance. With a mortgage it could take two months before you can draw down funds. With a bridging loan you could have finance in 7 to 10 days; in some cases quicker. In exceptionally time constrained situations bridging loans have been known to complete in 24 hours.

The bridging loans process

The bridge financing process is typically as follows:

We will establish with you what you are trying to achieve.

Once it is clear that a bridging loan is the right type of finance required, we will research the lender market using our in-house bridging finance sourcing system for bridging finance rates.

A suitable bridge lender will be selected and will be provided with a summary of your situation, your reasons for wanting a bridging loan, the security you are providing and repayment strategy.

The lender will be given evidence (if applicable) of the new property purchase and proof of the price to be paid.

The bridge lender will issue an offer letter outlining the terms of the proposed finance and what is needed to obtain the finance.

Assuming you are happy to proceed, the lender will instruct a property valuer to provide a valuation report. All documents will be then sent to your solicitor. Your solicitor will explain the terms and conditions of the loan to you.

On receipt of signed documentation funds will be released to the solicitor for legal completion.

The bridge loan funds will be then sent to your bank account. This loan process usually takes 7 days to a month. Sometimes, this can be reduced to hours, depending on the case and the set of circumstances involved, and crucially, what evidence the client has available. Similarly, it could take longer in the case of a complex development loan that requires a number of conditions to be discharged by the Local Planning Authority.

Once you receive the bridging finance you will be expected to repay the loan back by the end of the set term. Interest payments can be made in monthly instalments or can be rolled up in the final payment. 

Please call our bridging team on 0117 313 6058 to discuss your options.