Bridging Loans

Bridging Finance is a short term loan that provides fast access to funding when it is needed most.  Bridging loans can be used to raise funds for any legal purpose and are designed to last for no longer than 12 months and require you to have a strategy in place to ensure that you can repay the loan.

To provide an example, bridging finance may be suitable for people who purchase a property at auction, where funds are required quickly.  It is much quicker to arrange than a normal residential mortgage; on average 7-10 working days from the first enquiry to completion.

Real Life Case studies

Auction Purchase

A customer was successful in purchasing a property from auction for investment purposes, but had a deadline to complete of 28 days. Although the customer's bank agreed the finance in principle they would have struggled to complete the loan within the timescale needed. The customer did not wish to lose his deposit so he arranged bridging finance and was able to complete the loan within 5 working days. The customer was then able to re-mortgage with his bank to redeem the bridging loan.

Capital Raising

A customer had an outstanding VAT bill and was given a final demand to pay the bill within one week. The customer was in the process of re-mortgaging a portfolio of buy-to-let properties but was not able to release the equity in time to pay the outstanding bill. The customer did not want to risk waiting for the re-mortgages to complete so he enquired about bridging finance and was able to complete the loan within 48 hours. The customer's re-mortgages completed shortly after; which redeemed the bridging loan.

Should you think that bridging finance might provide a solution for you then please call one of our advisers who can discuss it with you at length.

Terms & conditions

Your initial mortgage consultation is obligation free. There will be a minimum fee for our mortgage service of £450, of which £150 is payable when you apply, and we will retain the commission from the mortgage lender. Alternatively, you can choose the fee only option which is typically 0.65% of the amount borrowed. The precise amount will depend on your circumstances and mortgage loan amount, and will be discussed and agreed before you make a mortgage application.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT

Legals

John Charcol is a trading style of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority; our registration number is 147692. John Charcol Associates LLP is an appointed representative of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority.  Registered office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN. Registered in England No: 02292688.  This mortgage site is only directed at persons within the UK.   The FSA does not regulate some investment mortgage contracts.  Calls may be recorded for training and monitoring. Max call charge from a BT landline is 3.9p per minute. Calls from other networks may vary.