Fast, flexible short-term finance to bridge the gap between property transactions. Ideal for property developers, auction purchases, and homeowners caught in a chain.
Bridging loans are short-term financing solutions designed to 'bridge the gap' between the purchase of a new property and the sale of an existing one, or to provide quick access to funds for time-sensitive property transactions.
Unlike traditional mortgages that are designed as long-term financing solutions over many years, bridging loans are specifically structured for short-term needs. They offer quick access to funds with minimal paperwork and faster approval processes, making them ideal for time-sensitive situations.
While they typically have higher interest rates than standard mortgages, the short-term nature of bridging loans means they can be a cost-effective solution for the right circumstances, particularly when speed is essential.
Bridging loans are versatile financial tools that can solve a variety of property and business challenges. Here are some of the most common scenarios where they prove invaluable:
When you've found your dream home but haven't yet sold your current property, a bridging loan can help you secure the purchase without waiting for your sale to complete.
Property auctions typically require completion within 28 days. Bridging finance provides the quick funds needed to secure auction properties before arranging long-term financing.
When a fast purchase is essential to secure a property at a good price or beat competing buyers, bridging loans offer the speed traditional mortgages can't match.
Fund the purchase and renovation of a property before selling it or refinancing with a traditional mortgage once work is complete.
For properties in poor condition that don't qualify for standard mortgages, bridging finance can fund the purchase and renovation to make them mortgageable.
Businesses can use bridging loans secured against commercial property to manage cash flow gaps or fund time-sensitive business opportunities.
Securing a bridging loan is typically faster than a traditional mortgage, but it still involves several key steps. Here's what you can expect when applying for a bridging loan with Friends Capital:
We'll discuss your requirements, the property details, your exit strategy, and the amount you need to borrow.
We'll assess your circumstances and search the market for the most suitable bridging loan options for your specific needs.
Once you've chosen a lender, we'll submit your application and arrange for a property valuation to be conducted.
Solicitors will handle the legal aspects, including property searches, contracts, and securing the loan against your property.
Once all checks are complete and legal work is finalized, the funds will be released to you or your solicitor.
At the end of the loan term, you'll implement your exit strategy, whether that's selling the property, refinancing with a traditional mortgage, or another solution.
Securing a bridging loan is typically faster than a traditional mortgage, but it still involves several key steps. Here's what you can expect when applying for a bridging loan with Friends Capital:
We'll discuss your requirements, the property details, your exit strategy, and the amount you need to borrow.
Most lenders require at least 5-10% of the property value as a deposit. Government schemes like Help to Buy and Lifetime ISAs can help boost your savings.
We'll assess your circumstances and search the market for the most suitable bridging loan options for your specific needs.
Check your credit score, gather necessary documents, and understand your budget. We'll help you prepare for the mortgage application process.
Once you've chosen a lender, we'll submit your application and arrange for a property valuation to be conducted.
With a mortgage in principle, you can start viewing properties within your budget and make offers with confidence.
Solicitors will handle the legal aspects, including property searches, contracts, and securing the loan against your property.
Once your offer is accepted, we'll guide you through the legal process, surveys, and final mortgage application to completion.
Once all checks are complete and legal work is finalised, the funds will be released to you or your solicitor.
Congratulations! You've completed your purchase and can now move into your first home. We'll still be here for any future mortgage needs.
At the end of the loan term, you'll implement your exit strategy, whether that's selling the property, refinancing with a traditional mortgage, or another solution.
Once your offer is accepted, we'll guide you through the legal process, surveys, and final mortgage application to completion.
Navigating the bridging loan market can be complex, with numerous lenders offering varying terms, rates, and criteria. As specialist bridging loan brokers, we have the expertise and lender relationships to secure the right solution for your needs. We can provide:
With access to the whole of the market and years of experience in arranging bridging finance, we can help you secure funding quickly and efficiently, even in complex or time-sensitive situations.
Our bridging loan specialists are ready to help you secure the short-term funding you need, with competitive rates and quick turnaround times.