Your home may be repossessed if you do not keep up repayments on your mortgage.
Some property purchases don’t follow a standard route.
You might be trying to buy before selling, dealing with a broken chain, working to a tight auction deadline or looking at a property that a mortgage lender won’t accept yet.
In these situations, it often comes down to three things:
This is where bridging finance can help get the property purchase over the line.
At Together, we work with customers in these situations every day. We take the time to understand what’s happening and help you find a practical way forward.
Bridging finance is a short-term loan secured against property or land. It’s used to bridge a funding gap between an immediate need, like buying a property and a future repayment event, like selling another property or refinancing.
That repayment plan is known as your exit strategy. It’s one of the most important parts of any bridging loan.
Common exit strategies include:
Bridging finance is different from a mortgage because it’s short-term, flexible in structure and often used when a property or borrower doesn’t meet standard criteria.
Bridging finance is built around real situations. If you recognise yourself in any of these scenarios, it could be worth exploring.
You’ve found your next home, but your current property hasn’t sold yet. Your deposit is tied up in that sale.
Property chains can fall apart unexpectedly. Your buyer could unexpectedly pull out, or a linked sale in the chain collapses. Your onward purchase is now at risk.
Auction purchases move quickly, and deadlines are strict.
Some properties aren’t suitable for a mortgage in their current condition. This could be due to structural issues, missing facilities or major refurbishment needs.
Sometimes the challenge isn’t the property, it’s the timing.
You might need to act quickly on a property opportunity, like a buy to let purchase, flip or mixed-use property.
‘Complex’ doesn’t mean irresponsible. It often means the borrower, property or transaction doesn’t fit standard lending criteria. This can happen for many practical reasons:
If you’re self-employed or have multiple income sources, proving income in a standard way can be harder.
It can be harder to obtain a typical mortgage when income varies on a month to month basis or comes from multiple sources. With bridging finance, the focus could be more on the property and exit strategy.
Historic credit issues can affect how lenders assess risk.
Even if your situation has improved, this can limit mortgage options. A bridging loan could be worth considering as an alternative to a mortgage, depending on the wider scenario.
Some properties fall outside typical lending criteria. This could be due to:
These may not be suitable for a mortgage straight away, but bridging can sometimes help you move forward.
Some purchases simply need to happen quickly.
Auction deadlines, chain breaks and time-sensitive opportunities don’t always align with standard lending timescales.
In these cases, urgent property finance may be needed to keep the transaction moving.
Some situations involve more than one moving part.
These layered scenarios can be difficult to fit into a standard mortgage structure. Bridging can sometimes provide a short-term solution between stages.
At Together, we’re used to working with these types of cases. We take the time to understand your situation and look at what could be possible.
Do you want to understand the potential cost of your mortgage or loan?
We can give you an idea of the monthly costs with just a few details like the property value, your deposit amount and how long you need the loan to last.
Find out hereBridging loans fall into two broad categories:
The right option depends on:
Bridging finance is designed for short-term use, so it’s usually more expensive than a standard mortgage. Typical costs include:
In some cases, interest can be rolled up and repaid at the end. This can help with cash flow, but it increases the total amount you repay.
It’s also important to understand the risks:
We’ll always talk this through with you so you can make an informed decision.
Bridging finance isn’t suitable for every situation.
It may not be the right option if:
The strongest cases tend to have a clear purpose and a well thought through repayment plan.
Bridging finance can help you move forward when timing, property condition or complexity makes a standard mortgage difficult.
If you’re dealing with a time-sensitive purchase or a non-standard situation, it might be worth exploring your options.
Speak to Together to see whether bridging finance could support your property plans.
Bridging finance is a short-term loan designed to cover a gap between needing funds now and repaying them later. It’s usually secured against property or land and is repaid through an agreed exit, such as selling a property or refinancing onto a mortgage. The strength of the exit plan is a key part of the assessment.
Yes, it can help in some cases. If your sale falls through but you still want to go ahead with your purchase, a bridging loan may allow you to complete while you find a new buyer. The key is having a realistic plan for your sale, including timing and expected value.
One option is to use bridging finance to cover the gap between purchase and sale. This allows you to complete on your new property first, then repay the loan once your existing home sells. It can be useful if you don’t want to miss out on a property while waiting for your sale to complete.
Yes, bridging finance is commonly used for auction purchases because deadlines are often much shorter than standard mortgage timescales. It can help you complete quickly and secure the property. Before bidding, it’s important to have a clear exit strategy and understand all associated costs.
In some cases, yes. Bridging finance can help you buy a property that isn’t suitable for a mortgage due to its condition, such as needing major repairs or missing key facilities. You can then carry out improvements and either refinance onto a mortgage or sell the property as your exit.
Yes, self-employed borrowers can often be considered for bridging finance. Because the focus is usually on the property and the exit strategy, it can be more flexible than a standard mortgage. At Together, we look at your overall situation rather than relying on a single way of assessing income.
Regulated bridging loans are typically used for personal situations, such as buying a home you plan to live in. Unregulated bridging loans are usually used for investment or business purposes, such as buy-to-let or commercial property. The type you need depends on how the property will be used.
An exit strategy is your plan for repaying the loan. This could include selling a property, refinancing onto a longer-term mortgage or using funds from another source. Lenders will look closely at how realistic and achievable your exit is before approving the loan.
Bridging finance can often be arranged faster than a standard mortgage, although the exact timeline depends on the property, legal process and complexity of the case. At Together, we’ll work with you to move as quickly as possible while making sure everything is properly assessed.
The main risks relate to cost and repayment. Bridging finance is usually more expensive than a standard mortgage and is secured against property, so your asset could be at risk if the loan isn’t repaid. Having a clear and realistic exit strategy is essential to managing these risks.
All mortgages are subject to our terms and conditions.
Loans offered by Together Commercial Finance Limited are not regulated by the Financial Conduct Authority.
