Bridging Finance
Bridging finance (also often referred to as Swing or Gap finance) is a source of short-term mortgage secured by a charge on land or property.
Examples of when bridge finance is needed:
- Buying a second property before you've sold the first
- Purchasing property at an auction.
- Receiving a discount off the market value of the property
- Quick sale - 2 weeks.
Bridging finance is more expensive than a conventional mortgage however offers you the benefit of:
- Monies being released with 4 working days
- Bridging loans can be non status, i.e. no income proof - self-certification.
- 100% funding - the loan is based on the open market value of the property.
A classic case for this type of funding is where you are buying a property at a discounted price. The bridging loan would be used to fund up to 100% of the purchase price. The bridge finance is used for a short period (a couple of weeks or months) whilst the property is remortgaged.
Traditionally bridging finance is used to buy property or businesses, you can use it for a number of other reasons such as holidays, weddings, home improvements and renovations, or improving cash flow.
Foundations Mortgages™ works with private lenders and mainstream companies to arrange bridging finance for commercial, residential and personal use. We have relationships with all of the lenders and know which ones are most suitable for your situation, allowing us to ensure that finance is in your account as quickly as possible.
Call our specialist bridging team now on 0800 169 6570 to discuss your options further.
Our fees are usually up to 2% of the mortgage amount.
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.