Bridging Finance

Purely Commercial Mortgages have a wealth of knowledge and experience when it comes to arranging bridging loans. We will source from a number of specialist bridging loan providers on your behalf to ensure that you achieve the best possible rates and a full and thorough assessment of the market.
 
Additional Info on Bridging Finance

A bridging loan is essentially a loan arranged over a short period of time that is secured on a property by way of either a first or second charge. The security can be provided in the form of both owner-occupied residential and commercial property. It can be taken against new or existing property, or a combination of both.
Short term bridging loans can provide essential financial help in cases of a temporary cash shortfall. Speed of completion is usually a critical factor as bridging facilities are often required to resolve a temporary cash flow problem or to satisfy a strict business deadline.
 
Bridging loans can be used for a number of reasons:

• Purchase of a new property before an existing property has been sold.
• Purchase a property for improvement or extension and then resale.
• Auction purchase
• Complete purchase of an overseas property
• Capital raising

One of the unique aspects of bridging finance is that, unlike many longer-term borrowing schemes on the market, the client is not heavily penalised for repaying the principle sum earlier than the contractual term. Both the lender and the borrower are aware from the start that the finance is only for the short-term. Bridging is much quicker to arrange than a normal residential mortgage; on average 7-10 working days from first enquiry to completion.

Usually a bridging loan is arranged for a short period of between 3 and 6 months – however, in some cases a longer term may be justified under certain circumstances.
Monthly interest payments are not usually required to be paid during the period of the loan and interest payments can be deferred or rolled up until the point of completion.

The following features are commonly associated with bridging loans:

• Non status facilities. A number of our lenders do not require proof of income and applicants with a bad credit records are considered.
• Rolled up interest. As previously mentioned, the interest accrued may be rolled up into the borrowing.
• Simple and fast application process.
• Fast completion turnarounds.
• No minimum term.
• No overhang penalties.
• No redemption penalties.
• Anywhere on the UK mainland.