Picture this: you’ve found the place you want, but the buyer of your own home suddenly pulls out. If you’ve already exchanged contracts, that leaves you needing money to complete a purchase that was supposed to be funded by a sale that’s just fallen through.
This is exactly the kind of moment bridging loans were built for.
A bridging loan is short-term finance secured against property, there to cover you until longer-term money arrives, whether that’s your sale finally going through, a mortgage offer landing, or funds from somewhere else. People use them to:
- stop a chain collapsing
- move quickly on an auction property where completion happens in days
- to buy somewhere that needs work done before a lender is willing to fund it outright
Fast, flexible finance, with a straightforward cost structure
Bridging works differently to a standard mortgage, so it’s priced differently too. Rates are usually quoted monthly rather than annually, and depending on the deal, you can either pay the interest as you go or have it added to the balance and settled at the end, whichever suits your plans better.
There’s typically an arrangement fee, plus valuation and legal costs, all fairly standard for this kind of lending. We’ll walk you through the full picture upfront, so there are no surprises, just a clear sense of what it’ll cost you to move quickly.
The bit that actually matters most
How you’re going to pay the loan back matters more than anything else here. Before taking one out, it’s worth being honest with yourself about a few things. What exactly will clear the balance? What’s the backup plan if that falls through or takes longer than expected? And could you comfortably handle it if the loan ran a few months over? Sales fall through and remortgages don’t always go to plan, so a bit of breathing room in your exit plan goes a long way.
Why it’s worth a conversation with us first
We look at bridging as part of the wider picture, not in isolation. Sometimes it’s genuinely the best option. Other times, a further advance from your existing lender, a remortgage, or a different structure altogether works out simpler and cheaper, depending on your circumstances and how much equity you’ve got to play with.
If a chain’s broken, a purchase is moving faster than your finances, or you’ve spotted something at auction, get in touch before it becomes urgent rather than after.
Talk to us before you commit to anything that depends on fast finance. Call 020 8366 4400 or email enquiries@cedarhfs.co.uk.
This article is for general information only and does not constitute financial advice. Your home or property may be repossessed if you do not keep up repayments on borrowing secured against it.