Bridging Finance / Refurbishment / Auction Finance
- Bridging Finance can be used for whole manor of reasons but in reality it is always essentially for the same thing which is to "bridge the gap" until traditional mortgage finance can be secured. Some of the more popular reasons for "taking out a bridge are":
- Because there are issues with a chain during the purchase of a property and a bridge is required to prevent the sale of a property falling through.
- Because a buyer has found a property they desperately want to buy but have not yet found a buyer for their current property.
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Buyer is looking to buy a property at auction and a traditional mortgage can't be raised quickly enough.
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A buyer wants to purchase land in order to do a self-build a project.
One of the most appealing features of Bridging Finance is the ability to take out the loan without having to make monthly interest payments by either rolling the interest up (and paying it off all in one go when you clear down the bridge) or by allowing the lender to retain the interest up front from the loan amount (in which case any overpayment of interest is settled with the borrower when the loan is cleared down). Borrowers will normally clear down the bridge by selling the subject property or by raising a traditional mortgage against the subject property once they are able to do so.
Knowing how you plan to clear down your bridge is known as your exit strategy and it is vitally important that you have a viable exit strategy in place before taking out a Bridging loan. Here at The Friendly Mortgsge Co. we will help you look at both the best value Bridging loan but we will also help you evaluate your best option for your exit. As a responsible broker we will never put a customer into a bridge with a sensible exit strategy in place so you can rest assured that you are in good hands when talking to use about your Bridging Finance needs.