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The Importance of Speed when using Bridging

Updated: Feb 14

A key part of Bridging is time and speed. In this post we give an overview of what Bridging is and a recent example of how we’ve helped a client secure a tailored bridging option for them – all finalised in under 2 weeks from initial contact to completion with Ezra Finance  



Is bridging an option for you?

A bridging loan is a form of short-term financing, typically secured for a period of no more than 12 months. It is designed to close a financial gap between the purchase and sale of properties, where quick access to funds is essential. Interest is charged on a monthly basis and the total loan amount is repaid once funds are obtained from the sale of a property or through refinancing. This type of loan can be utilised for purposes such as property investment, breaking a property chain to buy a new home, purchasing property at auction, and undertaking renovations, among other uses.

 

Considerations

Having an Exit Strategy is essential, you must ask yourself the question - How will I pay it back? Some good exit strategies include selling the property, re-mortgage, equity release or inheritance.

 

Bridging loans are short-term financial solutions that require careful management to ensure timely repayment. These loans typically have higher interest rates compared to traditional mortgages, and failing to repay on time can lead to even higher costs. Additionally, some lenders may impose fees at the conclusion of the loan term.


As with any property-secured loan, your home is at risk if you fail to keep up with repayments.

 

Case Study

One of our clients approached us to raise £350,000 to gift towards their son’s university accommodation. We originally explored a secured loan for them but due to a number of factors this wasn't the best option for their situation. Further discussions with the client revealed that they’ve been reducing their UK based assets with the plans to move back to China for retirement. As a solution It made sense to utilise the equity in their home to purchase their sons apartment with sale as exit.


Remaining equity upon sale will give clients liquidity to invest into properties with far better ROI and stronger rental yields which would financially support them in their retirement.


To find out more about how bridging could help you, get in touch with us




 
 
 

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EZRA  FINANCE LIMITED. COMPANY REG: 14439990. REGISTERED OFFICE: F39, Meanwhile House, Curran Embankment, Cardiff, CF10 5DY

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Ezra Finance is the trading name to Ezra Finance Limited is registered with the Data Protection Act registration No. 1013826 and is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 1013826 an Appointed Representative of TMG Direct Limited which is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 786245 and registered with the Data Protection Act Registration No: ZB507725.

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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The overall cost for comparison is 4.8% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.

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We may receive commission that will vary depending on the lender, product or permissible factors, The nature of any commission model will be confirmed to you before you proceed. Ezra Finance Ltd are a credit broker, not a lender.

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