Short-term lending (bridging)

Bridging finance is often taken out when a buyer is in a hurry – perhaps because they are buying at auction – or the property needs a lot of work so does not qualify for a standard residential mortgage. Bridging finance literally ‘bridges’ the gap until the buyer is in a position to remortgage onto a standard home loan or to sell the property and repay the bridging loan.

Bridging finance is offered by specialist lenders. Instead of an annual rate, interest is charged on a monthly basis. Bridging finance is a short-term arrangement and the lender will not agree to it unless there is a clear ‘exit strategy’ in place, or way of paying back the loan.

The best way to access bridging finance is to use a whole-of-market mortgage broker such as SWG. Most of the specialist lenders who offer bridging do not deal direct with the public but use an intermediary. At SWG, we can find the right bridging lender for your circumstances, helping you with your application so that you have the best chance of getting your funding requirements agreed in full.