Bridging Finance
Bridging Finance
Short-term property finance when timing matters
Sometimes a traditional mortgage isn’t the right solution — particularly when a property needs to be purchased quickly or there is a gap between one transaction and the next.
Bridging finance can provide short-term funding to help complete a property transaction, with the intention of repaying the facility through an agreed exit strategy.
When might bridging finance be used?
Bridging finance may potentially be considered for:
- Property purchases requiring a quick completion
- Auction purchases
- Refurbishment projects
- Purchasing an unmortgageable property
- Property chains where timing creates a funding gap
- Refinancing an existing bridging facility
- Development or investment projects
- Buying a property before longer-term finance is arranged
- Releasing capital from property
Speed and flexibility
Property transactions don’t always happen according to a traditional mortgage timetable.
A bridging facility can sometimes provide a solution where timing is critical, but the cost and structure of the borrowing need to be carefully considered.
The key question is not simply “Can I get a bridge?”
It is:
“What is the exit strategy?”
Before considering a bridging facility, we will look at how and when the borrowing is expected to be repaid.
Your exit strategy
Potential exits can include:
- Sale of the property
- Refinancing onto a commercial mortgage
- Development finance
- Sale of another property
- Other clearly defined sources of repayment
Deal First. Lender Second.
We start by understanding the transaction, the timescale, the property and the proposed exit before considering potential lenders.
With over 35 years of banking and lending experience, BAT Financial Solutions can help you assess whether bridging finance may be appropriate for your circumstances.