News from Bricks

Bridging Finance – 3 Simple Steps

Published by Tracey Abbott, Nov 2020

If you are not familiar with bridging finance it may seem intimidating but in essence, it is just a short-term loan. We have prepared this simple 3 step guide to help you through the process.

In an ideal world we would all like fair warning of events and for our plans to drop into place. Unfortunately, that is not always the case and sometimes we just need finance quickly – perhaps to secure property before others, or to purchase a dream home before our existing house has sold.

If you need to arrange bridging finance, here are 3 simple steps to help:

  1. Do your research

Find a lender with suitable expertise that can act quickly. Make early contact and discuss the process and timescales. Lenders tend to specialize in the type of loans they like to make so it is important to find the right one that fits your needs or ask a broker to find one for you.

Questions to ask a lender:

  • Does your loan fit their lending profile?
  • What information do they need to make a yes/no decision?
  • How quickly can they provide a loan offer?
  • Do they have responsive lawyers who can move quickly?
  1. Prepare your funding application

Package together all the information the lender will need to understand the proposal. They will want to know:

  • How much you need, what you need it for, when you need it and when you will repay it.
  • Confirm the borrowing entity (e.g., a person, a company) and provide some background on experience, relevant business interests, assets & liabilities, income and expenditure, etc.
  • How you will repay the lender and what needs to be achieved to get to that point? What is your backup plan if that plan fails?
  • Any unusual features to the proposal or third parties who are involved.
  • Full details of the security and supporting evidence of value. Lenders will have maximum Loan to Value (LTV) criteria so is it always worth disclosing other security options that may provide additional or ‘makeweight’ security.
  1. Be prepared (and patient!) to comply with a lender’s regulatory and due diligence requirements:
  • Laws are set by government authorities such as the FCA, HMRC and the Home Office to protect you and society in general.
  • Credit checks will be carried on all borrowers against all addresses occupied in the last 3 years. If you are aware of any adverse credit history then provide an explanation to the lender at the application stage.
  • All lenders are legally obliged to comply with government anti-money laundering (AML) and know your client (KYC) regulations designed to prevent money laundering, terrorism and financial crime. You will need to produce photographic ID and address verification and other information such as source of funds and nationality.
  • Ensure you have a good lawyer ready to act for you.

It can take many weeks to work through these steps especially if you have to apply online. Bridge finance from Bricks Finance avoids delays by meeting borrowers in person or via video calling to discuss and understand the proposal. In that way, we are able to provide a personal and very rapid service.

Click the Contact us button for more information.

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What our customers say

Personally, I found the service from Bricks 11/10 in every aspect, and I would highly recommend."

Oli, Property Developer

Devon

Property Development Loan

Thank you so much for everything you have done to help us secure this purchase. We are finally looking forward to a good night's sleep now!"

Stuart and Emma, Dream Home Purchase

Devon

Bridging Finance

This would not have been possible without your support and faith in us to deliver the project. Bricks Finance took the time to understand it. It has made an amazing difference to our lives."

Nick, Solar Energy Park

Somerset

Bridging Finance

This is our second deal and again we have achieved the first drawdown within 6 weeks from start to finish which is impressive!"

Richard, Finance Broker

Bristol

Equity Release Mortgage

Being able to purchase the site would not have been possible without the backing of Bricks."

Darren, Land Purchase

Monmouthshire

Bridging Finance

Bricks have given me the support I needed to do this. I couldn’t be happier to see it going up before my very eyes."

Russ, Beach House Development

Cornwall

Property Development Loan

Bricks have been amazing. Without them, I doubt we would have saved the pub for the village."

Becky and John, The Rose and Crown

Dorset

Refinance

When the guys from Bricks say they are going to back you they do, and it has been a real pleasure partnering with them on this project."

Matt, Property Development

Devon

Property Development Loan

I was really pleased with how quickly I had access to finance. I would recommend them to anyone looking to raise finance."

Jon, Property Development

Somerset

Property Development Loan

I’d really recommend Bricks Finance for anyone who needs to raise finance. They just allow you to get on and make things a success."

Dave and David, Property Development

Devon

Property Development Loan

I will be forever indebted to you all (thankfully no longer financially!) for taking a punt on somebody looking for a leg up in a new industry."

Alex, Forest Holiday Village Development

Cornwall

Land Finance

We found like-minded people who were prepared to take the time to understand our business and support our student accommodation in Exeter."

Angus & Alison, Landlords

Devon

Landlord Mortgage

I feel like Bricks is part of our team and wants a successful outcome for us as much as we want it."

Sam, Property Development

Devon

Property Development Loan

Having used Bricks myself, I now feel comfortable referring clients who have similar needs. The beauty of Bricks is their speed, flexibility and being FCA regulated so they can provide regulated and unregulated loans."

Geoff, Finance Broker

Somerset

Property Development Loan

Bricks are so easy to deal with; they get involved and take an interest in the project all the way to completion."

David, Finance Broker

Cornwall

Bridging Finance

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Speak to us directly

We’d love to hear from you. Whatever your enquiry give us a ring or send us an email and we’ll respond as soon as possible.

Bricks Finance Ltd

Winslade Park

Manor Drive

Exeter, EX5 1FY

United Kingdom

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