Bridging Finance Broker
Bridging Finance London is specifically for individuals who require short-term loans, typically taken out for a period of 3 months to 3 years pending the arrangement of larger or longer-term financing.
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Bridging Finance Solutions
Unique Property Finance is a specialist short-term finance broker and has access to exclusive bridging finance products from market-leading providers.
With over 15 years of experience in providing bridging finance, we have access to and have built long-term working relationships with a broad network of lenders, this in turn enables us to provide the most competitive bridging finance terms to our clients.
With the property market becoming more and more competitive, it is imperative that property investors and developers can act quickly to secure new opportunities, Bridging finance is an important funding option for those looking to buy and develop properties quickly.
Whether you require fast access to bridging finance due to a chain break or have a more complex scenario that requires short term funding, our bridging finance brokers have the knowledge and expertise to deliver a tailor-made solution to suit your needs. Please call our offices to have an initial discussion with one of our expert bridging finance brokers.
Bridging Finance Examples
There are many scenario's when bridging finance can be used to assist clients when purchasing a property. Here are some examples of this:
Refurbishment of a property - This can include properties that are deemed not suitable security in their current condition by high street lenders and will have an enhanced value once the works have been completed.Our solution will include a possible exit strategy if re-sale of the property is not desired.
Conversion of a property - This can include converting properties back to residential use from offices or public houses for example, which can be purchased with or without planning permission.
Buy Property at Auction
Bridging finance helps secure auction properties in the UK with their fast approval times. They cover the purchase price and act as a temporary loan until you secure a long-term mortgage or sell another property. However, these loans come with higher interest rates.
Refurbish or Convert a Property
Bridging finance can be a powerful tool for property refurbishment and conversion projects. The speed and flexibility of the loan means a developer can capitalise on market opportunities and move from purchase to refurbishment stage very quickly.
Finance Purchase of Dilapidated Property
Oftentimes traditional mortgage lenders will not provide loans on dilapidated property. However Bridging finance is far more flexible and provides the quick cash injection to cover refurbishment expenses. The loan is then typically repaid in full, either through refinancing or selling the renovated property.
Finance Purchase of Property Portfolio
Traditional mortgages can take time for approval. Bridging finance allows you to act quickly and secure an opportunity before a potential competitor. Speak to us about bridging loans for large property portfolio purchases.
Chain break purchase
This occurs when a buyer has found a new property but must complete immediately or face losing the property because the vendor does not wish to be in a chain. Alternatively clients may not want the added pressure of selling at the same time as buying or simply do not have time to sell their current home.
Also, a client may have lost the buyer for their existing property and time does not allow a new one to be found. In this instance, rather than waiting until a new buyer comes forward for the existing property and risk losing the new home, a bridging loan may be a suitable alternative.
Below Market Value Purchase
This is where a buyer has negotiated a purchase price well below the properties current value. Subject to the value of the property being confirmed it is possible to arrange a bridging loan that is based on the current value of the property and not the actual purchase price.
This means that the discounted purchase price can reduce the amount of cash deposit required. This type of loan is typically repaid via a remortgage or subsequent sale of property. Please note the remortgage cannot always be done within the first 6 months of ownership.
It should always be noted that given the nature of bridging funding, it is more expensive than a standard mortgage and should be considered only as a short-term funding option. It is also essential to establish the exit strategy at the point of application to ensure the loan can be repaid.
Frequently Asked Questions
Bridging loans can be quite complex to understand, our bridging finance brokers have shared some of the most frequently asked questions they've received.
What are the requirements for a bridging loan?
Bridging loans are usually secured on an asset like a property or business. The lender will require you to have an agreed exit strategy in place before agreeing to lend to you.
Can you turn a bridging loan into a standard mortgage?
Yes, this is key to obtaining a bridging loan. Lenders will require you to have an exit strategy which usually means refinancing the property through a high street lender, or the sale of the asset.
Bridging loans tend to be flexible when compared to standard mortgages and this might mean you are able to access the finance you require without too much difficulty. Most bridging lenders focus on the property and your future plans when making a decision to lend and therefore do not tend to have stringent "stress or affordability tests."
Do you need a deposit for bridging finance?
Yes, In most cases, lenders will require a deposit in order to provide you with a bridging loan. Some lenders are able to lend up to 75% loan to value.
How long does a bridging loan take?
Bridging loans are known for being super quick and very flexible. Some lenders are able to release funds just hours after the initial enquiry.
Do you need proof of income for a bridging loan?
No, in most cases bridging lenders will not require to see any proof of income. Some lenders will also take a view on all credit histories, including borrowers with CCJs and a history of arrears.
Can bridging finance be used to purchase unmortgageable and problem property?
Yes. Bridging finance can be used to fund the purchase or renovation of properties that may be considered unmortgageable due to various issues, such as structural problems, failed EPC ratings, or being deemed non-habitable by surveyors
Can I get a bridging loan if I have bad credit?
It may be possible to get a bridging loan with bad credit, but the interest rates and fees may be higher and the lender may require additional security or a lower loan-to-value ratio. It is best to speak to our Bridging Finance brokers.
How much can I borrow with a bridging loan?
The amount you can borrow with a bridging loan depends on the value of the property being used as security and the lender's criteria, but typically ranges from £25,000 to several million pounds.
Get in Touch with Bridging Finance Experts
Unit 3, Mountview Court,
310 Friern Barnet Lane,
London N20 0LD
E: info@unique-finance.co.uk
P: 020 3645 4322
Give us a call or send an email to book an appointment. We endeavour to answer all enquiries within 24 hours on business days.
We are open from 9:30 am — 6:30 pm Monday - Thursday & 9:30 am — 5:00 pm Friday.