Bridging finance, or short-term mortgage loans, are often used in property development, purchasing properties at auction, or “bridging” the gap between selling one property and completing the purchase of another. The goal of bridging finance is to release a large sum of cash over a short period, using one or more properties as security.
Several options are available with bridging finance, such as a serviced loan – where you make monthly payments like a traditional mortgage, or retained/rolled-up payments – where you pay the entire amount at the end. It’s essential to seek expert advice before using this type of finance.
Client D: After purchasing a derelict barn at auction, our client needed financing to make it habitable. We secured a £120,000 loan, enabling them to make crucial structural improvements. The client’s aim is to refinance the property with a traditional mortgage once it meets mortgageable standards.
Client W: This client found a unique opportunity – a well-built property with no interior. We helped them secure £160,000 in bridging finance to complete the interior, creating their dream home. Once the property is finished, they plan to refinance with a traditional mortgage and repay the bridging loan.
If you’re interested in exploring bridging finance options further, don’t hesitate to contact us at Legacy Financial. Give us a call today at 01226 643271, and one of our friendly advisors will be more than happy to assist you.
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