Where funding is required at short notice, maybe a property auction or a purchase under ‘notice of re-possession’, then a short-term ‘Bridging Loan’ may be necessary.
There are now more short term property lenders in the UK than there have ever been, so rates are coming down and terms are becoming more flexible.
Bridging finance, is a financial tool used to raise funds against the value of a property. These funds can be used for any legal purpose, maybe to purchase a property or to raise capital for some other reason.
Bridging finance is primarily for short term purposes – typically one or two months but can be for up to two years. Literally any residential or commercial property which has provable value can be used to secure a bridging loan.
We have access to open and closed bridging schemes through associate companies that will meet this need, while The Mortgage Store arranges longer term funding to replace the ‘bridge’ once the purchase is complete.
Some forms of bridging finance are not regulated by the FCA.