Commercial & Bridging

MORTGAGE BROKER FOR COMMERCIAL LOANS & bridging finance

We work with key partners to support with commercial and bridging finance. This can be to solve for ‘bridging the gap’ between buying one property before your current property is sold. We also support property developers or property landlord with refurbishment and development finance needs. Other requirements can be Limited Company Directors and Business Owners looking to purchase commercials premises.

Whatever your property finance requirements, we can endeavour to build the right team of professional to help you find the right solution.

What is a bridging loan?

Bridging finance is a form of secured finance and works similar to a mortgage; the difference is that usually it is used to gain access to short-term funding, normally no longer than 12 months until the asset is sold or longer term funding is arranged. However; bridging finance or short-term finance comes in a variety of forms and can be secured against anything of asset value, you can raise capital on this asset value for an interim period. You may be requiring this capital to buy land, purchase a property at auction, renovate a property or simply enable you to complete a new purchase before your existing property is sold.

Often bridging loans come in two forms:

• Open Bridge: this is where the borrower does not have a fixed date of the asset being sold, therefore the date of the loan to repay is ‘open’ – there will still be a cut-off or term for how long the funds can be borrowed for before needing to be repaid. The lender will check repayment vehicles in place to ensure the bridging loan can be repaid; the date of when these are sold is simply not set. For example; you are raising capital to purchase a property at auction but the completion date is not set and you need to complete the renovation work, therefore the date is open but the repayment vehicle is to sell the property once renovation work is complete OR refinance to a new lender.
• Closed Bridge: the duration of the funds needing to be borrowed is fixed. For example; the new property has a fixed completion date of 31st May but the existing property is being sold on 30th June and therefore the funds are set for a month to ‘bridge the gap’ between new property completing and existing property being sold at a later date.

Bridging loans can be used for residential, investment or commercial purposes.