News from Bricks

How To Arrange A Quick Bridging Loan

Published by Clive Banks, Sep 2021

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

Clive Banks

founder and investor

Will Michelmore

founder and investor

Jerry Rihll

founder and investor

Tracey Abbott

head of lending

Harry Dawson

finance manager

What our customers say

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Oli, Property Developer

Devon

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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

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Nick, Solar Energy Park

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Darren, Land Purchase

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Matt, Property Development

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Jon, Property Development

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Dave and David, Property Development

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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

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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

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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

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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

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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

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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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