To provide an example, bridging finance may be suitable for people who purchase a property at auction, where funds are required quickly. It is much quicker to arrange than a normal residential mortgage; on average 7—10 working days from the first enquiry to completion.
Real life case studies
A customer was successful in purchasing a property from auction for investment purposes, but had a deadline to complete of 28 days. Although the customer's bank agreed the finance in principle they would have struggled to complete the loan within the timescale needed. The customer did not wish to lose his deposit so he arranged bridging finance and was able to complete the loan within five working days. The customer was then able to re-mortgage with his bank to redeem the bridging loan.
A customer had an outstanding VAT bill and was given a final demand to pay the bill within one week. The customer was in the process of re-mortgaging a portfolio of buy-to-let properties but was not able to release the equity in time to pay the outstanding bill. The customer did not want to risk waiting for the re-mortgages to complete so he enquired about bridging finance and was able to complete the loan within 48 hours. The customer's re-mortgages completed shortly after; which redeemed the bridging loan.
Should you think that bridging finance might provide a solution for you then please call John Charcol to speak with an adviser, on 0845 413 1404. They will be able to discuss it with you at length. Alternatively, you can complete the form below.
John Charcol is a trading style of Towergate Financial (West) Limited which is authorised and regulated by the Financial Services Authority. Registered in England No. 02292688. Registered office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN. Telephone: 0844 346 3711.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.