Bridging Finance

Short Term Finance - Innovative Solutions

'Bridging finance' or 'short term finance' - is effectively secured lending for instance as 'First', 'Second' or 'Third' charge. The 'bridging' lending community is generally made of small and niche lenders, opposed to high street lenders allowing for diverse range of loan products, offering greater flexibility to cater for differing borrower needs.

Lenders tend to be continually innovating to keep market share, which has had the knock-on-effect of the availability of wide spectrum briding finance options. Here lies the advantages and pitfalls as one needs to navigate through differing products to realise the right fit that meets your circumstances, as getting it wrong can be expensive or financially crippling.

Bridging Finance can be secured against 'residential' or 'commercial' property (and other assets)

Due to general lack of liquidity in the money markets bridging finance has gained popularity, and carved a particular niche in the market evolving to provide solutions not readily available by mainstream lenders, 'bridging finance' can be a strategic financial instrument for funding.

Bridging finance can add value - but must me used with careful planning, and to limit exposure to risk. Typical holds on bridge finance are typically 3 months to 12 months, but can be as short as a day and term long as you require subject to affordability. Main aim is to be 'in' and 'out' of the bridge finance in the shortest viable period to maintain a cap on costs.

Short term bridging finance be used for practically for any legal purpose, examples below:

mortgage-triangle   First or Second Charge lending for 'Buy-to-Let' investment property.

mortgage-triangle   First charge loan for auction property acquisition.

mortgage-triangle   First charge against land for capital raising and releasing locked equity.

mortgage-triangle   First charge mortgage to complete development or refurbishment works, and then to exit via a mainstream lender

mortgage-triangle   First charge bridge finance for business purposes

mortgage-triangle   First Charge 'bridge' in the event of repossession by administrators.

mortgage-triangle   First charge for development purposes, and then refinance upon completion

mortgage-triangle   First charge 'bridge' in divorce settlements for instance 'marital buyout'.

mortgage-triangle   First charge 'bridge' for capital raising to assist cash-flow to cover temporary shortfalls in finance.

mortgage-triangle   First Charge 'bridge' for VAT, TAX, or HMRC needs, or inheritance tax settlements.

mortgage-triangle   First Charge 'bridging' finance for urgent school fees.

mortgage-triangle   Second Charge 'bridge funding' for Capital raising.

mortgage-triangle   Second charge capital raising for HMRC arrears.

mortgage-triangle   Second Charge short term loan for for property refurbishment and development.

mortgage-triangle   Second Charge 'bridge finance' loan to facilitate a deposit to purchase a new property.

mortgage-triangle   Third Charge 'bridging' finance is also possible for leveraging equity if there is sufficient head-room.

NOTE: Mezzanine Finance - is also 'short term' finance and used mainly in property development projects and property acquisitions, and can be primarily a 'First' or 'Second Charge' basis.

A key benefit of a bridging loans can be speed in completion and meeting tight transaction deadlines, and inherent flexibility in lending terms.

There is no hard and fast rules with 'bridge' lenders each have differing terms and the way they work, making our role critical in managing your needs and time scales and ascertaining if the funding is right and meets your specific needs and circumstances.

Who do we deal with?

Being in the market since 2004 we have extensive market knowledge, and close lender relationships with an extensive range of lenders mainstream, niche, private debt, syndicated funds, pension funds, private capital, investment banks and High Net worth Individuals.

Choosing a Lender?

There are a diverse number of short term 'briding' lenders and new ones entering the market. Choosing a suitable 'bridger' can be a minefield particularly as some types of bridging finance require a regulated FCA compliant lender. For companies and property investors the type of bridge finance required for 'commercial' purposes is deemed 'non-regulated'.

Bridging finance is a specialist arena, in order to source a suitable lender you will be in safe-hands get in touch to talk through your requirements with us, the initial enquiry is free.

Caveat emptor is Latin for "Let the buyer beware' and one needs to take care in sourcing the correct funding. We often get clients who have approached potential lenders direct, but often do not understand key factors taht may effect them.

What will it Cost?

Please do not trip-up and get attracted by the 'head-line' interest rate as a potential promotional tactic, it may not be the full picture. There are many costs latent and manifest, involved with 'bridging' finance and even penalties. Therefore it is imperative you get the correct advise/guidance. we discuss your needs, and simply go to the market and negotiate personally your 'bridge' finance requirements with lenders and attempt to give you the best deal depending on your personal requirements.

Giving rates on a web site has little meaning, as pricing and lending terms differs from case to case. Our function is to get you a correctly packaged 'bridging' solution as a holistic solution at the right price and terms. Remember all terms for 'bridging' finance will be disclosed, and we seek to have transparency in our relationships.

Specialists in complex cases:

We pride ourselves to find funding solutions in difficult or complex scenarios in a discreet and attentive manner. We welcome to discuss options for Serious credit and default problems; and former Bankruptcy & Insolvency, including settlement of bankruptcy liabilities and IVA settlement.

If you require assistance with either placing a bridging loan enquiry, or seek an exit via re-mortgage by a mainstream lender or even another bridge if your existing facility has expired, please get in touch by phone 0845 4860786 or message us.