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.