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

Major improvements to auction purchase

A client came to us looking for a bridging loan in order to do renovations on a house that they had purchased at auction – the property was uninhabitable in its current condition and needed major renovation to allow the client to go to market and sell for a profit. We were able to complete a bridging loan in two weeks from submission which will allow them to complete the renovation in a timely fashion and start their next project using the profit from the sale. (August 2024)

Consultant: Jake Cumber

Complex bridge on land

A client came to us having agreed the purchase of a plot of land. They had an agreement for a delayed completion to allow them to get planning permission for 4 units, significantly uplifting the land value. The sale of one of the four plots was to take place simultaneously to their purchase completion. Despite the complex circumstances, we were able to source a bridging loan to fund 50% of the purchase price of the full site with the other 50% being funded by the sale of the plot. (July 2024)

Consultant: Ben Tyler

Tools on top of house floor plan.

Major renovation project

Our client came to us looking to buy a new residential property that was stuck in probate and needed major renovation. The client had the funds available for the work and we were able to approach a regulated bridging lender who would lend on the basis of the client refinancing their existing residential property and completing the work within 12 months. Utilising the dual representation opportunity with the lender’s solicitors, we enabled our client to buy the property whist keeping their current home until the works are finished. (June 2024)

Consultant: Alex Penny

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: contact@dynamo.co.uk