Bridging Finance
A bridging loan typically takes less time to arrange and can be invaluable in helping with Auction Finance and other situations that require Quick, Short-Term funding with flexible income & property requirements.
- Home Cubic
- Bridging Finance
If you are considering bridging finance be sure to take a look at some the factors that make this type a loan suitable in different situations. We included below some examples of common situations where a Bridging Loan might be the right option for you.

Auction Purchase
- Many auction purchases in the UK require full payment within 28 days
- The property being purchased might not meet the property requirements of mainstream mortgage lenders
- Obtaining finance for a short period to carry out the works before remortgaging to a mainstream lender might help in enabling you to purchase a property at a lower price than you might otherwise been able to


Purchase With Short Deadline
- A Bridging loan can allow you to make the purchase of the property you have found as it is designed to provide "Fast Funding"
- The Sale of your existing property can be used to repay the bridge loan once the sale has completed
- This can help you to avoid jeoparding the purchase of your ideal house whilst avoiding the sale of your property at a lower price due to the pressure associated with the completion of your onward purchase.


Unsuitable Property Condition
- Bridging loans in such situations can be incredibly useful in enabling the purchase of a (potentially bargain) property which might be at a lower proce than if it was in a condition to meet the property criteria for mainstream lenders.
- Sourcing a lender that will consider the property in its current state will allow you to make the purchase
- Once you have bought the property through a bridge loan, you can carry out the works to get the property in the right state for it to considered by a conventional mortgage lender, thus making it more appealing to prospective buyers who want to make the purchase through a mainstreram lender.
- With the works being completed and the property now meeting the requirements of mainstream lenders, a remortgage to a mainstream lender can now take place.
- Due to the property meeting the security requirements for a greater pool of lenders, if your goal is to sell the property then it might now be able to command a higher price than what you purchased it for.


Buy -> Refurbish -> Sell
- Could be useful especially if a property has been sourced at a "Lower than Market Value" price due to the condition of the property itself and the aim is to bring the condition to a level whereby a better price can be commanded if certain works are carried out on the property.
- Fast, Short term funding when there is no requirement for a length mortgage term or to avoid being tied in to a conventional mortgage.
- The term can be set in accordance with the time that is deemed to be suitable to carry out the home improvement works
- Income crtiteria is flexible, as many lenders will lend based on the loan size against the value of the property.

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Some Important Points
A bridge loan typically takes less time to arrange, however, it is not always the most cost-effective solution. We will use our knowledge and expertise to ensure that all avenues have been explored before recommending a bridging loan. If it is the correct solution based on your circumstance and there is a clear exit strategy in place, then we will be happy to advise & recommend a suitable bridging product that will assist you in meeting your goal.