Call Now: 0800 138 6001 - Open 24/7

Call Now: 0800 138 6001 - Open 24/7

Compare Bridging Finance

Enter Your Details.

Get A Quote Now!

Enter your details and we will compare all UK lenders to get you the very best Bridging Finance for your requirements.

Compare Bridging Finance

Enter your details and we will compare all UK lenders to get you the very best Bridging Finance for your requirements.

Bridging Finance

Bridging finance is most often used to “bridge the gap” between two property transactions, allowing for the purchase of a new property before selling your current one. This can be useful if not enough funds are available to buy the new property before selling your property.

Once the old property has been sold the proceeds are used to pay off your bridging finance. This is the traditional use of bridging finance it allows you to put an offer in on another property before you had sold your own, as estate agents would not even consider an offer from you before you had a sound offer on your property, however, if you had bridging finance in place you are in effect a cash buyer, as you were no longer a part of a property chain. This also gives you more leverage on the price of the property you are buying as the seller can be confident the sale will go through quickly, without all of the pitfalls that can occur when the sale is a part of a chain.

There are many more uses that Bridging Finance is used for including some of the following.

Auction property purchase

After a winning bid has been made in an auction, a 10% deposit is required on the day of the sale with the balance of 90% due within 28 days of the auction, (normally) within a month. The problem with this is that it is near on impossible to arrange traditional mortgage funding within these timescales. Because bridging finance can be raised very quickly it is possible to have finance in place within the 28 days that the auction house requires payment to be made.

Depending what you intended to do with the property you would typically take out the finance for up to 12 months. This would give you breathing space to either arrange a normal mortgage on the property or resell it on for a quick profit. It always pays to take out the finance for 12 months as you never know what could happen and it will not cost you any more to take a 12 month loan over a 6 or 3 month loan, the arrangement fee will be the same and you will only pay interest for the time the loan was outstanding, so if say the loan was out standing for 90 days then your interest due would be 90 days of interest, as the arrangement fee is the same whatever the period the finance is outstanding it would not be rational to just take a shorter period. All it will do is put pressure on you to sell or remortgage as the loan falls due.

Quick purchases

If a very good deal for a property or land purchase comes your way and you need to act quickly, then Bridging Finance could offer you the perfect solution. Often property is offered either off-market as the owner doesn’t want everyone to know that they are selling the property, or what price they are prepared to sell for, or an owner needs to sell quickly and cannot wait for someone in a property chain or wait for someone who  has to arrange a mortgage, which could take many months even the quickest traditional mortgage is going to be in the region of 6-8 weeks and some can take even longer.

Whatever the reasons you need to make a quick purchase for, Bridging Finance offers you a rapid solution, finance can be arranged in as little as 7 days, our quickest deal was 3 days from initial enquiry although too be honest they did already have a valuation, realistically you would need to allow longer for complicated cases.

The main thing that determines how quickly you can complete is very often the Solicitors, so get a specialist one.

Bridging finance is often used as a short-term solution to raise cash for a business owner, it could be that they see a market opportunity and their bank has refused a loan or overdraft facility, or that they have a new contract or order that means they will need to take extra staff on and the cash flow wouldn’t support the extra wages.

Maybe you want to buy a new item of plant or machinery that would benefit the business in the long term but you do not have the short-term cash flow to support the purchase. As asset finance is not easily available on pre-used equipment, bridging finance could be used to take advantage of the discount from the new price, enabling you to make the purchase and move your business forward.

Very often a business can be faced with an unexpected bill like a VAT or HMRC bill that needs paying quickly. Whatever you need the cash for bridging finance could offer you a solution, by injecting cash into the business quickly.

As long as you own a property with equity in it then Bridging Finance is an option for you. The property can be either residential a buy to let property or commercial, be it your own business premises or even any investment properties you may own.

The fact is since the financial crisis many business owners have been in situations where the banks just did not want to know and Bridging finance offered a chance to continue trading and expand.

Inheritance Probate

Bridging Finance can also be taken out when funds are required for inheritance purposes, such as when a mortgaged property is inherited and the mortgage has to be paid off.  Bridging Finance can be used to pay off the mortgage, allowing another mortgage to be placed in the inheritor’s name. You can also get situations where a property has been left in joint names and the beneficiaries have different plans on what they want to do with the property, one may want to keep the property whilst another one may want to sell, by utilising a bridging loan, equity can be released from the asset allowing the beneficiary who wants to retain the property to do so and then arrange a long-term mortgage for the property.

Another use for short-term bridging finance is inheritance taxes, if taxes are due then these need to be paid before the beneficiaries receive the asset, usually, the property is the single most valuable asset in a will, so in most cases the value is tied up in the property. In this situation, unless you can arrange Bridging finance to get the asset released, you would basically take out a Bridging Loan and pay the inheritance taxes that are due, the property title can then be transferred to you and you can then put long-term finance in place to clear the outstanding finance.

Renovation, Restoration & Development

If a property cannot be mortgaged  due to it being in a bad state of repair or not having enough facilities for a mortgage, such as the lack of a kitchen or bathroom, bridging finance can be utilised to purchase the property and pay for the costs to renovate the property until a traditional mortgage is taken out.

Bridging Finance is also often used by property developers, they use this short-term funding option to purchase run down property and then carry out a refurbishment, before selling on at a profit, because properties for refurbishment tend to sell quickly either online or at auction, you need to act quickly with your finance options, property developers tend to build relationships with a particular Bridging lender and have confidence they can raise the funds to buy any property quickly, and in these cases the finance for property development becomes a bit like a revolving facility.

Developers are also turning to bridging finance to release cash from finished developments, it allows them to pay back the original building development finance and replace it with a bridge which is usually significantly cheaper than development finance. This allows them to release tied up profits and move on to the next project.

Prevent a Repossession Unexpected Bills

If a property is going to be repossessed due to missed payments on a mortgage or any other loan secured against it or other reasons, Bridging Finance can be used to pay off the debts or mortgage to give you time to get your finances in order, you need to take into account that the lenders will need to see a clear exit strategy in place to clear the bridging finance, this could be the sale of the property or funds coming to you from another source, if you intend to keep the property then you will have to demonstrate that you can get a mortgage, not easy if you are in this position although there are a few mortgage lenders who do bad credit mortgages but with bridging loan interest rates that reflect the fact that you have bad credit.

The main thing is that if you intend to sell the property at least you have control and the property will not be a forced sale which almost invariably means you get a price below market value.

Also if you have another property such as a buy to let or even a commercial or semi-commercial, either of these could be used as security for the loan which you could then use to clear the debt against your main property.

Bridge Financing Benefits

  • All interest payments a rolled up
  • Any credit status is OK – arrears, CCJs, Defaults
  • No proof of income or minimum earnings
  • Non-UK residents are ok
  • Against any type of property or land
  • Any location in the UK
  • Property in any condition accepted
  • Same day decision
  • Fast completion of your finance
  • Finance is from 1 week to 18 months
  • Up to 80% LTV 100% with multiple properties
  • We Compare All Bridging Loan lender’s
  • Borrow from £30,000 with no maximum amount
  • Minimum age is 18+ with no maximum age

Bridge Financing Benefits

  • All interest payments a rolled up
  • Any credit status is OK – arrears, CCJs, Defaults
  • No proof of income or minimum earnings
  • Non-UK residents are ok
  • Against any type of property or land
  • Any location in the UK
  • Property in any condition accepted
  • Same day decision
  • Fast completion of your finance
  • Finance is from 1 week to 18 months
  • Up to 80% LTV 100% with multiple properties
  • We Compare All Bridging Loan lender’s
  • Borrow from £30,000 with no maximum amount
  • Minimum age is 18+ with no maximum age

Start Here…

Compare Rates Now!

Enter Your Details.

Get A Quote Now!

We compare all of the UK’s Bridging Finance Lenders for you, with over 100 lenders you need to know you are getting the best rates and deals.

Compare Rates Now!

We compare all of the UK’s Bridging Finance Lenders for you, with over 100 lenders you need to know you are getting the best rates and deals.

Start Here…

Call us 24/7: 0800 138 6001

BWG Finance, Rex House 4-12 Regent Street, London, SW1Y 4PE. Tel: 0800 138 6001

Top 10 Finance Ltd trading as BWG Finance is authorised by The Financial Conduct Authority (FCA) no 725234 The FCA Think Carefully before securing debts against your home. Your property could be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Data Protection Act (1998). Registration No: Z2861884 Company Number 06261373 BWG Finance Rex House 4th Floor 4-12 Regent Street London SW1Y 4PE (c) 2007 - 2018 BWG Finance. Sitemap - Privacy Policy - Reviews - Contact BWG Finance

Bridging Loans - Bridging Finance - Bridging Loan Calculator - Bridging Loan for Property Development - Bridging Loan Guide - Bridging Loan News - Bridging Loan Reviews - Bridging Mortgages - Cheap Bridging Finance - London Bridging Loans - Non Status Bridging Finance - Non Status Bridging Loans