Gavel and model house

Bridging Loans

Short-term finance to purchase property or land quickly

Dynamo understands the importance of getting access to finance quickly as and when you need it.

Bridging loans are there for those moments when you need swift access to finance on a short-term basis. Our specialist team work with both high-street banks and specialist lenders to help you secure flexible finance that suits your personal requirements with funds usually available in an average of three to four weeks.

New kitchen

What is a bridging loan?

A bridging loan is a short-term finance solution to help raise funds quickly until a longer-term solution can be found. They are priced monthly as you would usually pay the loan back in a matter of months. Interest is higher than on a standard residential mortgage and is paid in a lump sum at the end along with the original amount borrowed and any arrangement fees. A bridging loan is a secured loan meaning that there must be an asset to set against it. This can be one property or several, but you risk losing this asset if you cannot repay the bridging loan.

What can bridging loans be used for?

Short-term finance can assist in many different circumstances including:

 

  • To prevent a purchase chain from breaking
  • Land purchases prior to development
  • Buying property at auction
  • Property development, renovation and refurbishment
  • Purchasing uninhabitable or unlettable properties (e.g. investment properties with an EPC rating of F or G)
  • Securing ongoing residential purchases prior to the sale of your own (including older customers downsizing who do not qualify for mortgage lending)
  • Purchasing below market value
  • Short-term second charge funding
  • Paying off debts prior to obtaining longer-term finance
  • Commercial and residential purchases that require change of use
  • Cash flow difficulties
  • Avoiding repossession
  • Probate and inheritance tax bills

Case Studies

Flipping a property

An existing client approached us looking to buy, refurbish and sell on a property. It had a relatively low purchase price and the client required the maximum funding possible to aid his cashflow for the significant refurbishment costs. We looked at options including stage release of funds in arrears as the works were carried out, but instead opted to borrow at 85% LTV gross day one. This meant the client would have enough funds immediately to purchase and carry out the works without the delay of waiting for re-inspections. (January 2024)

Consultant: Ben Tyler

Bridge to settle a separation agreement

A client was referred to us seeking funds of £350,000 to settle their separation agreement. They had planned to sell the residential home to pay this off, but the funds were required far quicker than it was taking to sell the house. We managed to secure them an excellent bridging deal. Thanks in part to the use of an automated valuation, we were able to get the mortgage offer in a matter of days and complete in a timely manner. (December 2023)

Consultant: Jake Cumber

Ensuring a successful auction purchase

A first-time buyer was looking to purchase at auction. We worked quickly and secured a bridging offer within a week. Unfortunately our client faced some unexpected complications regarding solicitors and also a delayed land registry application which threatened the successful completion of the purchase. We worked closely with the parties involved to overcome these hurdles, recommending a new solicitor and expediting the land registry application. Our experience and dedication ensured that the purchase did not fall through. (October 2023)

Consultant: Ahmed Ali

Contact Details

Trading office: Building Eight, Watchmoor Park, Camberley, Surrey, GU15 3YL

Registered in England No. 5695802

Tel: 01276 601040 or 0800 170 1888

Email: info@dynamo.co.uk