A bridging loan is a type of short-term loan secured on property.
What you need to know
- The nature of a bridging loan means it is more expensive than normal borrowing because it will enable funds when other mainstream sources will not.
- Bridging Finance is not a long term finance option.
- You can secure a bridge on several property assets.
- Bridging – Un mortgage able property. This may be because it is in a bad state of repair or doesn't meet the requirements for a residential purchase currently.
- Property Auction Finance. Buying at an auction it is quite difficult to have funding in place for some purchases.
- Commercial Property Bridging used when purchasing some commercial properties
- Bridging - Development Finance. Used when undertaking conversions of barns and non residential property at the outset.
- Property development finance used as short term finance to bring a property up to spec prior to refinance or sale often used for refurbishments.
Speak to someone today
If you would like to speak to someone directly today,
please give Jonathan a call.
Available Monday - Friday 9am to 6pm
Obtain your Permission
Securing a Bridging Loan is a process that requires guidance because you are taking a line of credit against some existing assets by re finance or yet to be purchased assets so it is a big decision to make.
As a result of your enquiry we will telephone you to assess what you are looking to achieve.
Agreement / Paperwork
Upon your agreement we will discuss your case with the best suited company concerned, give you initial feedback regarding the figures concerned and with your agreement submit the enquiry to the company concerned.
The company that we have recommended to you will then deal directly with you start to finish and initially telephone you to confirm what we have discussed and then go through their process and timeframe with you. We will oversee all and ensure a smooth process start to finish. There are no hidden fees or charges, it is all very clear and transparent.
Once your business need is completed and set up then unless you require any of our other services we carry out 6 monthly reviews to keep in touch but you know where we are.
Be advised that we do not cold call, we do not mail shot, we do not pester people, we do not force people to make decisions they do not want to. Everyone who we see is as a result on an enquiry led by them, meaning that the potential client has made the decision to look at and in most cases transfer their Final Salary Scheme or Personal Pension, or SIPP into a new arrangement be this a new Personal Pension or Annuity or Flexi Access Drawdown arrangement. Whilst we are not order takers, the point of this declaration is that we do not force or push people into making such decisions. We still go through a lengthy advice process to check viability, attitude to risk, product and fund selection and point out all of the pitfalls and benefits either way. In some cases we do not agree and this is pointed out to clients. We do not transact insistent client business.
Why do I need a bridging loan?
Bridging Loans are often used to fund you for a period of time whilst allowing you to either refinance to longer term debt or sell a property. Bridging finance can be offered against almost any property or land and can be used for a number of different reasons. The main uses are: Property purchase, capital raising for quick finance secured against property or multiple property equity. Options are available
What Is a Bridging Loan and How Does It Work?
We define a bridging loan as “a form of fast, flexible, short-term secured finance that can be used for any purpose”.
Many different types of people and organizations use bridging finance: first-time property developers, experienced property developers, investors, and financial intermediaries.
How Much Can I Borrow?
You can borrow anything between £10,000 and £2 million.
How Quickly Do I Receive the Funds?
Your bridging loan can be arranged within 24 hours if you need it immediately, but in any case it is a quick process – much faster than a bank or P2P lender.
Examples of Projects/Transactions
- There are many types of commercial property projects and transactions that a bridging loan can help with. Here are some examples we commonly deal with:
- Development for property – to build flats, retail and semi-commercial properties, student lets, or HMOs
- Development for land – to purchase land in order to seek a planning gain
- Development for finance – to secure properties at auction which are intended primarily as investment projects
Some reasons you should use us
- Access to our initial advice and finding a suited lender for your requirements
- Only the best brokers and product providers used to handle your application
- No hidden extra costs, all fees and charges fully disclosed at the outset
- Flexibility of product and tailored to your needs
- Extensive Industry Experience
- We are totally Independent, Directly Authorised Advisers.
- We are friendly and talk plain English and no waffle.
- No pressure selling from us.
Bridging finance can be used to help you drive an asset purchase towards completion.
The completion of a deal can be held up or stopped in its tracks by numerous obstacles. For instance, you might not have the required amount of cash up front, or perhaps the bank has unexpectedly denied you the funding.
Whatever the problem is, a bridging loan could provide the solution.
How does a bridging loan help?
With our contacts and panel of lenders, we can give you quick access to the cash you need to move ahead and finalize your asset purchase – whether that asset is commercial property or a piece of engineering software, we can help.
You can borrow between £10,000 and £2 million with us, up to 75% of your loan-to-valuation (LTV) ratio. As always, the loan will be secured against property (commercial, semi-commercial or residential) or land you own.
Fund your asset purchase with bridging finance
First Place Financial Ltd as a finance broker can help you source your bridging finance to meet your business objectives. If you need to fund a large asset purchase – or a relatively small one – we can help you. We assess each lending scenario on its own merit and help you place the application with the best suited lender offering you the best terms, using a rate that is aligned with your desired transaction needs.
Property Auction Finance
It is important to have the right finance in place when you go to auction, so that you can secure the property you have set your sights on. From property developers and private individuals, to financial intermediaries and entrepreneurs, we provide access to you to enable you to finance such purchases. There are a variety of people and companies who need our help.
What You Need After the Auction
When the hammer goes down at auction, you are usually expected to pay at least a 10% deposit on your new property straight away, then the balance of the purchase price within 20 days. The time to complete the transaction may be sooner depending on what your contract states. We will work to the timescales you need. It pays to have the finance in place prior to the auction as it is not worth the risk of paying the deposit and standing to lose that if you cannot complete in the timeframe.
Many people turn to us after a bank has let them down at the last minute, or if their personal finances cannot cover the full cost of their new purchase. Whatever your situation, we will find a financial solution that works for you.
Making Property Auction Finance Work for You
You can use short-term finance solutions for many reasons at auction, including the following:
- Securing finance quickly
- Maximizing the prospects of your new property
- Getting the deal to completion when banks let you down
You can borrow up to £2 million for your property auction needs assuming that you and your deposit and security meets lenders criteria. Additionally, if you need to secure finance before, after, or even during an auction, we may be able to help you. We often put in place pre-auction bidding facilities for our customers. If your bridging loan application is successful, we will put your property auction finance in place quickly so that you can complete your deal. We are available discuss the transaction with you right from the start and throughout the process.
Buy before you sell
There are several reasons why you might want to buy your new property before you have sold your old one. Many of us come across the dream property at an inopportune moment.
What can you do if you find this ideal home earlier than you are in a position to buy it? You can apply for a bridging loan, which will give you the finance needed to snap up that property before someone else does.
It could be that the sale of your existing property is not going as quickly as you had anticipated, or maybe you are receiving offers but they are not high enough. Whatever is holding you up, a loan can provide you with the solution.
Why would a bridging loan help?
A bridging loan gives you a quick injection of money, which in turn gives you much more control over your situation. Many homebuyers get stuck in extensive property chains because of the various financial and other hold-ups that can occur – one single complication can stall the plans of everyone else in the chain.
Commercial Property Bridging
When it comes to commercial property, there are many different types of lucrative projects and transactions that you can be involved in: buying and selling property, creating new buildings from plans, developing whole areas of mixed-use property, and many more.
What all of these scenarios have in common is that their success depends on secure funding from the beginning. Without this, your progress can be hindered at a crucial stage, or the project can come to a halt altogether. Perhaps the bank or P2P lender has let you down at the last minute, or they are unwilling to lend you the money in the first place – there are numerous reasons why you might encounter these types of financial obstacles. Whatever the reason, we can help you.
We can provide you with quick bridging finance that gives you the freedom and power you need to overcome your obstacle.
Bridging – Un mortgageable property
Get fast finance for an unmortgageable property. You could borrow up to £2 million with a bridging loan should all criteria be met.
Properties become unmortgageable for many reasons: The previous owner allowed it to fall into disrepair, the banks are tightening their criteria, or the property does not meet the necessary requirements to take out a loan.
If you see promise in the property you do not have to let it go to waste. Many landlords, private individuals, and property developers are taking advantage of this new method of funding on the market.
A bridging loan is assessed under different criteria from a traditional mortgage, First Place Financial Ltd can help you to obtain the funding when a property is unmortgageable.
Is your property an unmortgageable property?
Over time, our customers have used bridging loans to finance several kinds of property. Types of unmortgageable property include but are not limited to:
- Derelict property
- Unusual or non-standard construction property
- Low-value property (below £50,000)
- Property with no kitchen and/or no bathroom
- Short-lease property
- Property with structural issues
- Property with a mortgage retention
It does not matter whether you want an unmortgageable property to become a new home, an investment or buy-to-let property.
Bridging - Development Finance
We offer funding for all styles of development finance.
- Barn Conversion
- Conversion projects
- Custom Build Finance
- Grand designs
- Refurbishment finance
- Residential and Commercial Development Finance
- Self Build Finance
Property development finance
This is a short-term loan for residential property developments, such as refurbishment projects or construction, that is usually based on gross development value – i.e. what will the site be worth when the refurbishment or construction project is finished – that is then paid back in stages. We help you to provide fast and flexible funding for all types of property development projects.
If you are constructing several homes for profit, self-building a house for your family, converting a rural barn into a livable space, or refurbishing a run-down property to its former glory, we can help you make it happen.
Our widely varied customer base includes property developers, investors, and private individuals. We arrange finance across England, Scotland and Wales.
In some scenarios we can arrange funding up to 100% of the funding you need, including the purchase of land.