MORTGAGES
BRIDGING LOANS
Bridging finance is a short-term loan secured against any type of property or land on an interest-only basis. The term of a Bridging Loan is from as little as one month through to a maximum of 18 months. Bridging finance is available to an individual or a limited company.
Interest and the lenders arrangement fees are typically rolled into the capital advance, therefore there are no monthly mortgage payments to be met. Consequently, Bridging finance is not underwritten on affordability, instead, lenders are looking for a clear exit strategy, which will allow the funding to be redeemed, within the short-term period of the loan.
Bridging loans are faster to arrange and much more expensive than a mortgage or other types of secured loan. You should only consider this option if you have a clear way to repay the bridging finance quickly; for example, selling a house.
*Some forms of Bridging loans are not regulated by the Financial Conduct Authority.
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Actual loan amounts and affordability criteria will differ across lenders.
Your home may be repossessed if you do not keep up repayments on a mortgage.
Actual loan amounts and affordability criteria will differ across lenders. Your home may be repossessed if you do not keep up repayments on a mortgage.
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