Bridging Finance
Are you considering buying a property at auction, or looking to release extra funds from your current home but have a low credit score? Our mortgage brokers can suggest a variety of solutions you might not have been aware of.
Assess Your Needs and Eligibility
Determine why you need the bridging loan (e.g., buying a new property before selling your current one)
Find a Lender and Apply
Compare bridging loan lenders to find competitive rates and fees. Prepare necessary documents: ID, proof of income, property details, and existing mortgage statements.
Complete the Loan and Repay
Once approved, the loan is usually released quickly (sometimes within days). Use the funds for your intended purpose (buying property, renovation, or bridging finance). Plan the repayment, either by selling your existing property or refinancing into a standard mortgage.
The Importance of Bridging Finance
Short-Term Funding Solution
Bridging loans provide quick access to funds, useful when buying a new property before selling an existing one.
Higher Interest Rates
These loans often have higher interest compared to traditional mortgages, so costs should be carefully considered.
Repayment Flexibility
Bridging finance can be structured to repay at the end of the term or upon sale of the property, depending on the customer’s plan.
Risk Awareness
Customers need to understand the risks, including potential fees, property value fluctuations, and the short-term nature of the loan.
Documents Required for Bridging Finance
To process your mortgage application smoothly, you will need to provide several documents. These may vary depending on your employment status and personal circumstances
Personal Documents
Proof of identity – Passport or driving licence
Proof of address – Recent utility bill, council tax bill, or bank statement (within 3 months)
Proof of income – Payslips, tax returns, or accountant’s letter (if self-employed)
Credit report – To show credit history and existing commitments
Property Documents
Details of the property used as security – Address, purchase price, valuation, and title deed
Proof of ownership – Land Registry title or sales memorandum
Valuation report – Usually arranged by the lender
Financial & Exit Plan Documents
Evidence of deposit or equity – Bank statements or proof of funds
Exit strategy – Documents showing how you’ll repay the loan (e.g. mortgage offer, property sale details, or refinance plan)
Business plan or project details (if for development) – Cost breakdown, schedule, and projected returns
Things to consider
Exit Strategy
Know how you’ll repay the loan, such as selling or refinancing.
Loan Term
Usually short-term, from 3 to 18 months
Interest & Fees
Check rates, setup costs, and exit fees carefully
Loan-to-Value (LTV)
Most lenders offer up to 70–75% of the property value.
Property Type
Some lenders avoid risky or major renovation properties
Regulated or Unregulated
Depends on whether it’s for your home or investment
Credit History
A good credit record can help you get better rates
Other Considerations
Choose a lender who can release funds quickly, keep an eye on property value changes, and use an experienced solicitor to avoid delays.
Find Out Answers Here
Moving house in the UK is easier with good planning. Set a moving date, make a checklist, and pack early. Update your address with important services, prepare your mortgage and insurance, and keep valuables with you on moving day. After moving in, unpack essentials and settle into your new home.
Save money on moving in the UK by planning early and comparing removal quotes. Declutter before packing, use free boxes, and move on a weekday to cut costs. Notify utility providers early and check if your mortgage offers any moving support.
According to Barclays Bank, the average cost for moving home in the UK now ranges from £8,885 to £42,416, which includes a 15% deposit on an average property. Costs vary depending on the type of property, its location, and whether you are buying, selling, or doing both.