Bridging Loans
Short-Term Finance for Property Purchases and Funding Gaps
When a property transaction depends on accessing funds within a limited timeframe, bridging finance may provide a temporary solution. Whether you are buying at auction, purchasing before another property has sold or planning refurbishment, the borrowing needs to suit your circumstances and have a clear repayment route.
At Asghar Finance House, we help you explore bridging finance with specialist lenders. We take the time to understand your property, funding requirements and deadlines, explaining the costs and risks before you proceed.
Short term
Until sale or refinance
Secured
Against property or land
Exit first
A realistic repayment route
Free consultation
Talk through a bridging facility
Share a few details and our advisers will get back to you with personalised options. No obligation — just clear, specialist mortgage advice.
The funding gap
What Is a Bridging Loan?
A bridging loan is a short-term loan secured against property or land. It is designed to cover a funding gap until the loan can be repaid, often through a property sale or longer-term refinancing.
Depending on the lender and circumstances, the loan may be secured against one property or several. The amount available will depend on factors such as the value and suitability of the security, existing borrowing and your proposed repayment strategy.
Higher cost than a mortgage
Bridging finance usually carries higher costs than a standard mortgage, so it is important to understand the total amount payable and whether another funding option would be more appropriate.
Situations we discuss
When Might Bridging Finance Be Useful?
Bridging loans may be considered for the transactions below. Suitability depends on the individual case, and bridging finance should be considered alongside other available options.
01
Auction purchases
Where completion is required within a specified deadline.
02
Buying before selling
Where funds are needed to purchase a property before an existing property sale completes.
03
Property refurbishment
Where a property requires work before it may qualify for a standard mortgage.
04
Investment purchases
Where short-term funding is needed before longer-term finance can be arranged.
05
Property or land
Subject to the lender’s requirements and an acceptable repayment plan.
How the loan is repaid
A Clear Repayment Strategy
Your repayment plan, often called an exit strategy, is a central part of a bridging application. It explains how you intend to repay the borrowing within the agreed term.
If you plan to sell a property, the expected sale price and timescale need to be realistic. If you intend to refinance, you will need to consider whether the property and your circumstances are likely to meet the future lender’s requirements.
A sale or refinance is not guaranteed
Delays, changes in property value or difficulties securing a mortgage could affect your ability to repay the loan. We discuss these considerations with you before an application proceeds.
What you pay
Understanding Interest and Fees
These costs can affect both the funds you receive and the total amount needed to repay the borrowing. We explain the proposed terms so you understand the loan amount, available funds, repayment deadline and overall costs.
Monthly interest
Quoted monthly. It may be paid each month, deducted from the advance, or added to the loan and repaid at the end.
Arrangement fees
Charged for setting up the facility and can change the funds you actually receive.
Valuation and legal
Property valuation and legal work are part of most applications.
Exit fees
Due when the loan is repaid, and they form part of the total amount payable.
Timescale
How Quickly Can Funds Be Available?
Bridging finance can sometimes be arranged more quickly than a standard mortgage, but completion times vary. Lender checks, property valuations, legal work and the availability of supporting documents all influence the process.
01
Your deadline
Tell us about any purchase or auction deadline at the outset.
02
Lender checks
Criteria, security and your repayment route are assessed.
03
Valuation and legal
Property valuation and legal work influence the timetable.
04
Completion
Funding by a particular date cannot be guaranteed.
Next step
Discuss Your Bridging Finance Requirements
Contact Asghar Finance House with details of the property, the amount required, your deadline and how you intend to repay the loan.
Finance is subject to lender criteria, assessment and the suitability of the security. Some bridging loans are not regulated by the Financial Conduct Authority.
Your home or property may be repossessed if you do not repay a bridging loan or other borrowing secured on it.