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A guide to bridging finance

Updated: Oct 6, 2023

A guide to bridging finance

Bridging loans are a great way to finance a property, but understanding the interest rates and fees associated with them are important.

The below guide will explain everything you need to know about bridging finance.

What is a bridging loan?

A bridging loan is a short-term financing option used to bridge the gap between the purchase of a new property and the sale of an existing one.

It is designed to provide immediate funds to cover immediate expenses, such as the down payment on a new property, while waiting for the proceeds from the sale of the current property. With a quick application process and a shorter repayment period, bridging loans are a convenient solution for businesses in need of temporary funding to facilitate a smooth transition during property transactions.

Bridging finance rates

Bridging finance interest rates are the cost of borrowing. They're typically higher than other loans because they’re on a short-term agreement.

The bridging finance lender will want to know that you can afford the bridging finance, so they will look at a multitude of things from your credit score, to property portfolio before deciding how much they are willing to lend and the rate.

Why do I need a bridging loan?

A bridging loan is of benefit if you need money quickly, if you want to pose as a cash buyer to gain an advantage in the property market.

To help facilitate and improve a property before remortgaging. If a customer has adverse credit, and may need 12 months to improve their credit, a bridging loan is often a good solution.

How much does bridging finance cost?

Bridging finance rates depend on the loan to value, customers credit and the property type.

To get started, contact our team and we'll get back to you within 24 hours with an agreement in principle.

Is it worth getting a bridging loan?

If you're thinking of getting a bridging loan, it's important to understand what they are and what they're for.

Bridging finance is designed as a short-term solution for people who need money quickly, they must have an exit plan in place for after the 12 month period.

How long does a bridging loan take?

We can complete in as little as 48 hours from enquiry to completion. Bridging loans are usually arranged within 24 hours and come with flexible repayment options so that repayments fit around your lifestyle and budget.

The interest rate varies depending on many factors including how much money has been borrowed and how long the loan lasts for.

Need advice on bridge loan interest rates?

If you want to know more about bridging loans or interest rates, please contact us on 0161 823 7993 or complete our contact form. We'll be happy to help!

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