Bridging Finance is often taken out where funding is required at short notice, for example, buying a property at auction. However, a bridging finance mortgage has many other uses, the most common bridging finance solutions being:
- Purchase one property before completion on the sale of another by utilising a bridging mortgage.
- Fund the purchase of a property in need of refurbishment and possibly un-mortgagable in its current condition. The property would then be re-financed onto a normal mortgage after the improvements have been completed.
The list of possible uses is virtually endless, but they often have two elements in common; they are required at short notice and for a short period of time.
Bridging can be either on an “open”1. or “closed”2. bridging basis. We have access to bridging schemes through associate companies that will meet this need, while RM Mortgage Solutions arranges longer term funding to replace the ‘bridge’ once the purchase is complete.
If you are a first-time buyer and lack experience with mortgages then a bridging loan may not be the right option for you. However, every case is individual so why not call us to discuss your options.
1. An “open” bridging loan requires no pre-arranged exit strategy with the lender.
2. A “closed” bridging loan is where there is a guaranteed exit strategy. The rates for a “closed” bridging loan are usually lower than for an “open” bridge due to the lower risk for the lender.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Please Note: Some forms of Bridging Finance are not regulated by the Financial Conduct Authority.