At Life Financial, we offer advice and bespoke solutions to Bridging with the aim of utilising Bridging Finance to add maximum value to clients’ needs. We are in a unique position to source the most competitive and flexible short term lending solutions from a large range of the market’s leading lenders. Our Bridging Rates start from 0.65% per month and we also have some exclusive relationships enabling us to arrange finance where others are unable to.
What is Bridging Finance?
Bridging Finance is a short-term loan secured against property or land, available from 1 day through to 18 months. It is essentially used until longer-term finance can be arranged.
There are various ways in which Bridging Finance may be used to assist with clients’ needs. The main reasons are as follows:
Purchasing a property at auction usually requires a strict completion deadline of 21 working days, with a 10% deposit payable on the day of the auction. It is not generally possible to obtain conventional mortgage finance in such a short space of time, so a Bridging Loan can be arranged to assist with the purchase (typically 7 to 10 working days). Once the property purchase is complete, a more conventional mortgage can then be obtained in order to refinance and repay the bridging loan.
Bridging Finance provides clients with a valuable tool of accessing finance usually within 7 to 10 working days. Life Financial are able to secure up to £10m in this time frame and this can be particularly advantageous where an opportunity arises to secure a great deal if you can complete quickly.
Where a property has no working kitchen or bathroom, central heating or running water, mainstream lenders will be able to lend until the works have been completed on the property, as it would be considered uninhabitable.
It is possible however to arrange a Bridging Loan on this type of property. Once the work is complete, the property can either be refinanced to a conventional mortgage or sold, to repay the bridging loan.
Property Development & Planning Permission
Many clients now use Bridging Finance to assist in the purchase and/or renovation of a property which is then either sold or refinanced through more a conventional lender. The development could involve anything from light refurbishment through to complex structural changes to the property.
Bridging Finance can also be used against land or property in order to obtain planning and secure development funding. It is worth noting that part-complete projects can also be purchased with a Bridge.
Where a client is still in the process of selling their existing residence but wants to purchase a new property, a Bridging Loan will enable them to secure the new property before the sale of their existing property completes. The Bridging Loan can be secured against the new property or any other properties owned by the borrower. In some cases, we have been able to raise the entire amount to secure the client their new property.
We have significant experience and an in-depth knowledge of the bridging market which enables us to understand clients’ funding requirements and providing the appropriate solutions.
If you are not already a registered introducer and would like to know how we can benefit you and provide your clients with exclusive and market-leading bridging finance, please click here. For further information on our proposals or to discuss any potential cases please contact us