Bridge Financing
vs Mortgages
Bridging finance is a significant area of lending that is often overlooked by consumers, but which can provide an invaluable source of funds in particular circumstances where mortgages just won’t do the job.
Unlike a mortgage bridging finance is a short-term loan – in fact bridging finance is often known as “short-term funding”. The more popular terms “bridge finance” or “bridging loan” are applied in the most familiar of short-term funding scenarios – when a homebuyer needs to complete on a new property without having to sell their own home - and have become a catch all term to describe all types of short-term funding.
However, bridge financing can also be used for a variety of other purposes where a mortgage may be difficult or impossible to obtain including property auctions, refurbishments, development or buy-to-let. Usually bridge financing is far quicker to arrange than a mortgage and typically takes between 3 – 5 days from first enquiry to completion.
Finally, bridge financing can also be a very attractive option if you have credit problems that might lead to a your mortgage application being turned down. For those who have suffered from CCJs, mortgage arrears, repossession, bankruptcy bridge financing can be a godsend offering you the ability to get finance easily to pursue your property dreams.
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