Bridging Finance

Property Backed Bridging

Bridging is a means of raising finance against an asset that you own. This is different than taking a simple mortgage as the bridging market is unregulated and you cannot borrow funds against your own home. Bridging is seen as a short term money option and the standard length of terms range from 6 months to 1 year, as well as being for a very short amount of time. In certain cases the term can be extended, or an open bridge with no term limits can be arranged with agreement on both sides . It has become increasingly a vital solution to bridging the gap between the agreed purchase of a property and securing long term funding by traditional means, with investors and business owners preferring the flexibility of bridging over other options.

Swift Support

The rise in popularity in the use of bridging finance in the business and investment world is mainly because of the quick turnaround that it is possible to raise short term finance to get a deal done. The flexibility and quick decision making of the finance provider is the difference in many cases to achieving the optimal result for both sides in a transaction. The traditional lenders will not move at the pace that is sometimes required, and the decision in principal and offer process in the bridging sector is usually completed in a matter of a few days, not a few months that can sometimes happen by other means.

Legal Charge

The legal charge is the safety net that the lender will ask for to secure the loan that is being applied for. In the case of bridging, we would require to have first charge on the property and certain loan to value criteria will also have to be met to allow us to offer the client terms for a bridging loan. We would also ask clients and/or directors of the company to provide personal guarantees to show the commitment and willingness to repay the loan as agreed. The client will be advised to take independent legal advice to explain that in the event of any default on the loan they will be liable personally for repayment and risk losing their interest in the property secured by the charge as a minimum.

Bridging finance solutions