Bridging finance looks to cater for everything a standard Mortgage can’t.
When the need for cash quickly is paramount (can be same day if needed) or perhaps you need to finance the purchase of a property which requires work, Bridging finance looks to cater for everything a standard Mortgage can’t.
And its not just for property investors looking to acquire their next investment property. One large area of lending of bridging finance is where there has been a break down in a property chain and funds are required quickly to ensure an onward purchase can complete.
With different options available depending on your plans and interest rates not always set in stone this is where an experienced broker is paramount to ensure your project is matched with the right lender to ensure a seamless transaction and, crucially, you can carry on with your plans safe in the knowledge that the funds will be available when required.
With The Wright Mortgage Broker having a vested interest in both the bridging loan and the refinance out, (believe it or not some would put you into a bridging loan with no real means of having this repaid), we are the one stop shop to look after you whilst you focus on the project in hand.
Quite a few differences but to pick one, flexibility is the part that stands out. Bridging caters for chain breaks, properties deemed uninhabitable or not mortgageable or even those looking at a conversion from standard properties to perhaps a HMO or Multi-Unit.
If there is a scenario where a standard Mortgage has been unable to proceed, it is highly likely that a bridging loan can resolve the issue.
Typically 25% however some lenders are happy to proceed with a 20% deposit but if you have other assets, potentially no deposit is required at all.
How much deposit is required can also be driven by whether you wish to have the interest ‘rolled’ or ‘retained’ so you make no payments or ‘serviced’ so you make monthly payments until this is repaid.
Always a variety of options to choose from which we’ll go through in details when discussing your options.
Going back to the previous comment, Bridging is flexible, as are the lenders! The only such scenario I’ve seen where a bridging loan couldn’t be utilised was when the property was deemed to structurally not sound and full demolition and rebuild was recommended by the surveyor, such was the extremity of the condition.
Certainly wasn’t the end of the road for the client as with all matters discussed and experienced on numerous types of property finance, the client was aware that this may have been the case. The lender was aware and with the right lender we were able to go down a development finance route instead.
Tailored Mortgage Solutions – Get in Touch
Have questions? Need a quote? Fill out the form below or call us today for expert mortgage advice that’s tailored to you.
1
We will have a chat about your plans and goals.
2
You receive tailored recommendations, quotes & next steps.
3
We submit your application and manage everything to completion.
I’ve written a blog on this which helps cover this off in more detail, but to cover this off quickly, if you are looking to proceed on a term mortgage when it’s clear that your plans dictate a bridging loan would be more suitable, it may put you in breach of a lenders terms and conditions.
As you can imagine brings its own consequences and headaches.
Something that I always explore as given the short term nature of the finance, its not always the lowest cost way to proceed.
However, everyone’s circumstances are different and whilst we can look at other finance options it may well be the case that by doing this (and in turn leave the subject property finance free, or funded at reduced level), this does tie up more funds in the project than perhaps may be suitable, impacting further projects whilst this is ongoing.
Anything. Whether this is a standard Residential property, HMO, Care Home, Commercial provided it has the appropriate value as confirmed by the valuation it can be used.
Other lenders are happy to use no property assets as well if required.
For a bridge, not really as the asset is the security so in some cases, income isn’t even assessed.
So regardless of your circumstances around income, this can usually be catered for.
As above, not really as the asset is the security so with the right lender even with adverse in the background, this may not be an issue.
Given the flexibility of the finance always an option to consider, should your circumstances and requirements dictate that bridging is required.
With different lenders offering varying degrees of pricing, flexibility and speed it crucial to have a chat with an experienced broker who utilises numerous lenders year on year to ensure you are placed with the right lender. Of course, something which we are more than capable of doing.
Registered in England and Wales No. 16065530
The Wright Mortgage Broker is an Appointed Representative of Connect IFA Limited 441505 which is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register:
https://register.fca.org.uk/s/ under reference 1023919.
The FCA do not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Ltd Companies.
The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Typically there will be a fee for mortgage advice, the precise amount will depend on your circumstances which you will be made aware of before you choose to proceed, but typically this is £450.00.
© 2025 The Wright Mortgage Broker Ltd
Not all services we offer are covered by the FCA
Commission Disclosure: We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and the product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.
It is our intention to provide you with a high level of customer service at all times. If there is an occasion when we do not meet these standards and you wish to register a complaint, please write to: Compliance Department; Connect IFA Ltd, 39 Station Lane, Hornchurch, RM12 6JL or call 01708 676110. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service www.financial-ombudsman.org.uk
Website By Mutatio Creative
