Bridging Finance

Swift Financial offers flexible bridging loan solutions to help you secure property quickly, whether you're buying before selling, purchasing at auction, or funding renovations. Our fast, short-term finance options bridge the gap to long-term solutions, with competitive rates and personalised advice.

What is a Bridging Loan?

A bridging loan is a short-term property loan designed to bridge the gap between the purchase of a new property and the sale of your current property or securing long-term financing. These loans are typically used for:

Purchasing a new home before your current home sells
Buying property quickly at auction
Financing property renovations or developments
Bridging the gap for property transactions

Bridging loans are highly versatile and can be arranged for various types of property transactions. While they were once mainly used by developers and property investors, they are now an accessible financial tool for everyday homebuyers.

How Do Bridging Loans Work?

Bridging loans work by providing short-term financing, typically up to 12 months, to cover the cost of purchasing a property or completing a transaction. Here's how it works:

Secured against property: The loan is secured against one or more properties, which could be the property you're buying, selling, or both.
Repayment strategy: A clear repayment plan must be in place, such as selling your current property, refinancing with a long-term mortgage, or liquidating other assets.
Fast approval: Bridging loans can often be arranged in as little as 72 hours, giving you the ability to act quickly in property transactions.
Interest: Interest is charged on a monthly basis, but you can also roll up interest to be paid off at the end of the term, minimising monthly payments.

Benefits of Bridging Finance

Speed: Bridging loans are much quicker to arrange than traditional mortgages, often in as little as 72 hours.
Flexibility: Use them for a wide range of property transactions, from buying a new home to renovating an uninhabitable property.
Large Loan Sizes: Borrow up to 80% of the value of the property or assets you're using as security.
Low Risk: Since the loan is secured against property, risks to lenders are relatively low, resulting in competitive interest rates.

How Much Does a Bridging Loan Cost?

Bridging loans can involve several costs, and the final cost will depend on your loan size, complexity, and the lender. Common fees include:

Interest Rates: Calculated monthly, and typically higher than a standard mortgage, but only paid for the short term.
Valuation Fees: We can often negotiate an automated valuation, however if a physical valuation is required then a bespoke quote will be provided dependant on property type.
Legal and Broker Fees: Typically around £1200 for legal fees and £450 for broker fees (may vary).
Arrangement Fees: Usually 2% of the loan amount.
Exit Fees: Most bridging lenders do not charge exit fees.

Types of Bridging Loans We Offer

Residential Bridging Loans
- Purchase a new home before selling your existing one. By securing your new home with a bridging loan, you become a cash buyer, making your offer more attractive to sellers.
Downsizing Bridging Loans
- If you're downsizing, you can use a bridging loan to purchase a smaller property and have time to sell your existing home for maximum value.
Auction Bridging Loans
- Buying at auction? Bridging loans allow you to meet the tight deadlines of auction purchases, ensuring you complete the transaction quickly and secure the property.
Renovation Bridging Loans
- If you're looking to buy an uninhabitable property or one requiring significant renovations, a bridging loan can help you cover the cost until you're able to refinance or sell the property.
Chain Break Bridging Loans
- If your property sale falls through, a bridging loan can keep your purchase alive, preventing you from losing your dream home.
Property Flipping Loans (Bridge to Let)
- For property developers and investors, we offer bridge to let loans to help purchase, renovate, and sell properties for profit or secure buy-to-let opportunities.
Care Fee Bridging Loans
- In cases of urgent care fee payments, we provide bridging loans secured against property to give you time to sell and cover the costs without the pressure of immediate sale deadlines.
Interest Only Bridging Loans
- Designed for high-value or unique properties, an interest-only bridging loan allows you to manage your payments until you find a buyer or refinance.

How Much Can You Borrow?

You can typically borrow up to 80% of the value of the property you're using as security. The exact amount depends on the lender, the type of property, and your exit strategy.

Key Requirements:

Security: One or more properties or assets as collateral.
Exit Strategy: A clear repayment plan, typically via property sale, refinancing, or another asset sale.

Bridging loans are often accessible even if you have bad credit, as the loan is secured against property, and the lender is more concerned with your ability to repay.

Are Bridging Loans Right for You?

Bridging loans are an excellent solution for situations where time is of the essence, and you need fast, short-term financing. Whether you're buying a new home, bidding at auction, or renovating a property, we can help you find the best bridging loan to suit your needs
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Why Choose Swift Financial?

At Swift Financial, we specialise in finding tailored bridging finance solutions that meet your specific needs. We work with a wide range of lenders and negotiate the most competitive rates for you.

Our Process:

Step 1: Discuss your needs and explore your options.
Step 2: We source the best bridging loan options and guide you through the application process.
Step 3: You receive funding quickly, with clear terms and a repayment plan.

Ready to Discuss Your Bridging Loan Needs?

If you're looking to secure a bridging loan for a property purchase, auction finance, or renovation, get in touch with Swift Financial today. We're here to make the process quick, simple, and stress-free.