Bridging finance is a short-term loan secured against property, used to bridge the gap until longer-term finance can be arranged.
We specialise in delivering bridging finance, a professional and efficient financing service that offers short-term loans to individuals and residential investors. So, whether you are looking to bridge a funding gap when purchasing a new property. Or looking to solve a short term cash flow problem, Summit Capital Mortgages is able to help. Because speed is generally the crucial factor when it comes to bridging finance, we move quickly. A decision can usually be obtained within a couple of hours and completion within five days.
Why you may need bridging finance
A broken chain
When you have found the property you wish to purchase, but the chain has broken down. Bridging finance can be used to purchase your new home before your current property has been sold.
When buying at auction, you generally must complete within 28 days. So, you may not have time to arrange a conventional mortgage. Bridging finance can be used to complete on the purchase within the deadline.
Below Market Value Purchase
If you secure a property being offered at a discount to its open market value, it may be possible to secure bridging finance based on the value rather than on the purchase price. Conventional lenders would only lend at the lower of the purchase price and the open market value.
If a property needs substantial repairs to make it habitable, conventional banks will not lend until the work is complete. It is possible to arrange a bridging loan whilst the property is being renovated. Once the work is complete, a conventional mortgage can be used to repay the bridging finance.
Making it easy
Our mortgage advice process
Step 1: We listen
It’s important for us (and you) to take the time to get to know each other and to make sure we understand what you would like to achieve. It’s a cliche, but no two people are the same. And we want to make sure our advice and service is tailored to you.
Step 2: We provide our initial thoughts
After that, we’ll provide you with some details. Things like how much we think you can borrow and what kind of a mortgage deposit you’ll need to buy that dream home. We’ll also suggest the best type of mortgage for you, looking at fixed and variable rates.
Step 3: We search the market for you
We’ll then move on to search the market for you. In addition to finding you the best rate, we’ll take into account other things like lender service levels and affordability calculations. It’s all part of having an expert on your side. We can even arrange an Agreement in Principal for you with a lender so you know exactly how much you can borrow.
Step 4: Completion
We finalise your mortgage and you move in. Alas, we can’t guarantee the moving experience will be easy, but at least you are safe in the knowledge that you have the most appropriate finance for you.
Please note that some Bridging Finance products are Non-Regulated products and not regulated by the Financial Conduct Authority. Therefore the protection afforded to Regulated products does not apply. If you unsure what this means, we can tell you.
An older client owned a property in Central London which was worth a substantial amount of money. Her intention was to sell this property and buy a home in the country for her to live out her days. She identified the perfect property, near her family and with a dedicated care system nearby but her existing property had not received any offers.
We were able to arrange a Regulated Bridging loan which enabled her to buy the new property for cash. The interest on the loan was rolled up so did not need to be serviced and the loan was repaid in full within 6 months from the sale of her existing property.
Our useful mortgage calculators can help you work out the key numbers without any hard questions.