What can bridging finance be used for?

Bridging is a short-term loan secured on property, usually for a few months up to two years. It’s for when you need to move faster than a mortgage lender can, or when a property isn’t mortgageable yet. You repay it when you sell, refinance onto a longer-term mortgage, or sell another asset.

Buying property

Auction purchases. Auctions usually expect completion within 28 days, which is often too quick for a mortgage. Bridging can be arranged in that time.

Breaking a chain. Buy your next property before the sale of the last one completes, then repay the bridge when it does.

Properties a mortgage lender won’t lend on yet. For example, one without a working kitchen or bathroom, or with structural work to do.

Buying a business’s premises, or a property as part of buying a business.

Doing a property up

Refurbishment. Light or heavy works, then refinance onto a mortgage or sell.

Conversions. Changing what a building is used for, like a house into flats, or offices into homes.

Development

Development exit. Repay the development loan when the build is finished, and give yourself time to sell or let the units.

Raising money against property you own

Refinancing or replacing an existing loan, for example one that’s coming to the end of its term.

Raising capital for another purchase or for your business.

Paying a tax bill, such as inheritance tax or VAT, while you wait for funds from elsewhere.

Probate, for example releasing money from an inherited property before it’s sold.

Lease extensions, to make a flat mortgageable or sellable.

What bridging isn’t for

A home you or your family live in. Loans secured on your own home are regulated, and we’re not set up to arrange them yet. Laurie can introduce you to an FCA-authorised partner who can help.

Finance that isn’t secured on property, like asset or vehicle finance, invoice finance or unsecured loans. We can pass you to a partner for those.

Tell Laurie about your deal and get a rough guide to what you could borrow.