Arranging a bridging loan can be simple and quick and in this guide we have distilled our many years of experience to help make the process as simple as possible.
There are times when a business or investment opportunity presents itself, but you just don’t have the funds readily available to take advantage of it.
Perhaps there is a property auction, a business sale, or a one-off opportunity from a professional contact. Meanwhile you are waiting for the funds to arrive from a property sale, a tax refund, or for the many weeks your bank will take to approve your loan. So, what happens if there is gap between when you need the money and when the funds will come through. This is where bridging finance can help.
A Broker Could Help: There are lenders that specialist in bridging loans and the process can be a fast one as long as you are prepared. Unless you have a recommendation or knowledge of a particular lender, a finance broker can be helpful. Reputable brokers will know which lenders have the appetite for your circumstances and their pricing and turnaround time. They can point you to the most appropriate lender thus avoiding multiple or wasted applications.
What You Should Consider: Be clear on how much you need, for how long, for what purpose and how you will repay it. Most people underestimate how long they will need a bridging loan so don’t be overly optimistic and make sure you understand the implications if you need an extension.
Provide evidence of your security, which will most likely be required. If it is an investment property, what is the current mortgage? If it is your main dwelling you will need a lender who is regulated by the Financial Conduct Authority (FCA). You can check if your lender is registered by visiting the FCA website (link https://www.fca.org.uk/firms/financial-services-register).
Legal Advice: You will need to brief a lawyer and check that they have immediate free capacity to represent you and if so, put them in funds to deal with the lender’s lawyers. A common delay is caused by the borrower’s lawyer not giving the lender’s lawyer an undertaking on fees, without which they will not commence work.
How Much Will A Bridging Loan Cost? You will pay a premium for bridging finance compared to a typical high street bank loan, but speed might just secure a bargain. Once the deal is complete you will have the time to arrange a longer-term loan with your bank.
Bricks Finance works with professional brokers across the South of England and Wales. We avoid 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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Experience, standing by you
Founded in 2014 with over 90 years of combined property, finance and legal expertise, the Bricks Finance team help local people to access finance easily and quickly by offering bespoke lending using their own funds as well as those from investors.
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What our customers say
Thank you for partnering with us on this project. It's been great to have had a knowledgeable funder who understood the project and allowed us to get on with doing what we do."
John & Sam, Property Development
I wanted a reasonable fixed rate of return with low risk. I like the way my money is combined with money from the other investors, the founders and their families to diversify the risk and to make loans in the South West."
Mrs B, Lyme Regis
It has been fantastic working with you all and we’ve appreciated your advice, support and efficiency throughout."
Vicki and Peter, Property Development
I invested because I trust the people behind Bricks and they are able to give me a much better rate of return than my bank. I like their business model and the way they focus on providing support for local businesses in the region which they know and understand.”
Mr R, Senior Partner with a Global Law Firm
I invested in Bricks over four years ago and have increased my investment several times since. The fixed rate of return is far better than anything available with the high street banks and I like to see where my money is being invested."
Mr A, Exeter
I love the fact that my money is being used constructively on projects throughout the South West and that I can see the tangible benefits that Bricks offers to both borrowers and investors."
We became investors in 2019 and invested more this year because we get a far better rate of interest and regular interest payments.”
Jeff and Karen, Exeter
Congratulations for the help you are giving to West Country businesses and your good stewardship of the investment funds.”
Peter and Gillian, Devon
The final part of my land assembly purchase has now completed. You made the whole financing aspect so easy from start to finish. Thank you all so much."
Ady, Loan For Land
I'm so happy and want to thank you with all my heart - you have enabled me to buy the property of my dreams!"
Chloe, Property Loan
We cannot thank you enough for helping get this over the line and the life-changing opportunities that are now on the horizon"
Jill, Property Finance
Thank you again so much for being completely brilliant. Thank goodness there are people like you, Clive, Will, Jerry and Lyn out there."
Tracey, Home Finance
Personally, I found the service from Bricks 11/10 in every aspect, and I would highly recommend."
Oli, Property Developer
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
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
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
Being able to purchase the site would not have been possible without the backing of Bricks."
Darren, Land Purchase
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
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
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