Bridging Loans

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.

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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 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

Renovation of unmortgageable property

An existing client found a property which they planned to renovate to either rent out or sell on. The property was currently unmortgageable because of its condition, plus the client had a completion deadline due to the property being sold at auction. We recommended a bridging loan to allow them to carry out the work required and then release the equity in the profit made to further invest and continue building their portfolio. (March 2024)

Consultant: Justine Desport

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

Bridging Loans

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

What can bridging loans be used for?

Case Studies

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