Bridging Loans When Timing Is Everything
When an opportunity will not wait for a standard mortgage, a bridging loan can provide the funds you need within days or weeks. We help you find the right bridging lender, structure the loan sensibly and, crucially, plan a clear route out.
Short-Term Finance Secured Against Property
A bridging loan is a short-term loan, usually for up to 12 to 24 months, secured against property. It is designed to bridge a gap: between buying one property and selling another, between purchase and refurbishment, or between an opportunity arising and longer-term finance being arranged.
Because bridging lenders focus mainly on the value of the security and your plan for repaying the loan, they can often move much faster than mainstream lenders. Interest is typically charged monthly and is often rolled up or retained, so you make no monthly payments and repay everything when the loan ends.
Bridging loans can be first charge, where the lender is the main or only lender secured on the property, or second charge, sitting behind an existing mortgage. They can also be secured across more than one property to increase the amount you can borrow.
Common Reasons Our Clients Use Bridging
Auction Purchases
Breaking a Property Chain
Unmortgageable Properties
Refurbishment Projects
Business Opportunities
Planning Gain
Bridging is a specialist tool, not a cheap one. Rates and fees are higher than a standard mortgage, so it works best when the loan is short, the plan is clear and the opportunity justifies the cost.
The Most Important Part of Any Bridging Loan
Every bridging lender will want to know how you will repay the loan, known as your exit. The two most common exits are selling the property, or refinancing onto a longer-term mortgage once the property is mortgageable or your circumstances allow.
A credible, well-evidenced exit is the single biggest factor in getting your bridging loan approved, and in avoiding costly extensions later. We help you test your exit before you commit: checking that the expected sale value is realistic, or that a suitable mortgage will be available at the end of the term, so the bridge leads somewhere safe.
With our accountancy background, we can also look at the numbers on refurbishment and investment projects, helping you see the true cost of borrowing against the return you expect.
If your plans change part-way through, for example a sale taking longer than expected, speak to us early. Lenders are far more accommodating when they hear about a delay in good time, and we can explore extensions or refinancing before the deadline arrives.
Understanding the Difference
If a bridging loan is secured against a property that you, or a close family member, live in or intend to live in, it is usually a regulated bridging loan and is subject to FCA rules designed to protect consumers. Chain-break loans on your own home typically fall into this category.
Bridging secured against investment or commercial property is usually unregulated. Unregulated bridging can offer more flexibility, but it carries fewer consumer protections, so it is important to understand the terms fully.
We will explain which applies to you, and make sure costs, fees and the consequences of not repaying on time are clear before you go ahead. [CONFIRM FUTUREWISE FINANCE’S PERMISSIONS COVER REGULATED BRIDGING.]
Frequently Asked Questions
How quickly can a bridging loan complete?
Straightforward cases can complete within one to three weeks. Valuation and legal work are usually the main factors in timing.
How much can I borrow?
Typically up to around 70% to 75% of the property value, with more possible when additional security is offered.
Do I need to make monthly payments?
Usually not. Interest is commonly rolled up or retained and repaid at the end of the term.
Explore more of what we offer
Asset Finance
Property Finance
Limited Company Buy to Let
Working With Us Remotely
Free initial consultation
A short call or video meeting to understand what you want to achieve and what your finances look like.
Online meetings
Talk to your adviser by video or phone at a time that suits you, including [EVENINGS / WEEKENDS, CONFIRM].
Secure document upload
Send payslips, bank statements and accounts through our encrypted portal the moment you have them.
Electronic ID verification
Confirm your identity online in minutes.
E-signatures
Sign your paperwork digitally, from your phone if you like.