Bridge mortgage: a quick solution to your borrowing needs

A way of securing capital fast is to consider a bridge mortgage. This has become extremely popular over the last five years as a means of borrowing on a short term.

Bridge loan financing has increased dramatically from around £500m per annum in 2011 to £3.6bn per annum last year.

What can I use a bridge mortgage for?

As the number of short term financing options reduce a residential bridge loan has become very popular. Property developers and buy to let landlords use them regularly.   They use bridge loan financing to provide short term borrowing. Property can be given a facelift and then achieve a reliable exit into the open market, or refinanced on a buy to let mortgage.

Bridge mortgages due to this growth and popularity have given rise to an increased number of brokers arranging commercial bridge finance. There has also been  a rapid increase in the number of bridging loan companies.

How can I get a bridge mortgage?

There are now a regular number of providers of bridge mortgages that actually advertise and attend property auctions. They can be the first to offer bridge loan financing but not necessarily at the best bridging loan interest rates. In many cases borrowers need the certainty of capital. By having someone in the auction room to provide a real estate bridge loan we buying convenience. Actually this means that in many cases you’re not getting cheap bridging loans as no choice is on offer. Alternatively you should look for a bridge mortgage broker who has an extensive panel of bridging loan companies. Check they have a track record of completing many bridging mortgages before.

What is the maximum amount I can borrow?

Most bridge mortgages have a minimum loan requirement of £100,000 to a maximum of £5m. The larger bridging mortgages have less providers so it can be harder to secure bridge loan financing in those circumstances. In some cases bridging loan companies restrict the geographical areas. Many prefer London and the south east. This area has seen house prices at their highest and it therefore attracts the larger bridge loan financing.

Thinking about getting a loan?

If you would like to be considered for a bridge mortgage, please contact us. We can help you with your application from start to finish.