Bridging Finance in Farnham
Get in touchAt Specialist Mortgage Lenders, we specialise in bridging finance in Farnham GU9 7, which is a short-term loan designed to “bridge” the gap between buying a new property or asset and securing longer-term funding.
It is commonly used in property transactions, development projects, or situations where fast access to funds is required.
Since bridging finance are short-term, they are typically more expensive than standard mortgages but provide flexibility and speed that conventional lending cannot match.
Contact a member of our team in Farnham today for a free consultation.
What Is Bridging Finance?
Bridging finance is a temporary loan that provides immediate access to funds until longer-term finance, such as a mortgage or sale of an existing property, is arranged.
It is often used when a buyer wants to secure a property quickly or when funds are needed before another transaction is completed.
The loan is repaid once the longer-term funding becomes available.
How Does Bridging Finance in Farnham Work?
A lender provides a short-term loan secured against property or land.
Borrowers can usually access funds within days or weeks, making it one of the fastest forms of property finance in Farnham.
The loan is repaid either by selling a property, refinancing into a mortgage, or using other funds. Interest is typically charged monthly, with repayment terms ranging from 1 to 24 months.
Who Uses Bridging Finance in Farnham?
Bridging finance in Farnham is popular among property developers, landlords, and investors.
Homeowners also use it in situations where they want to purchase a new property before selling their current one.
Businesses may also utilise it to meet cash flow needs or capitalise on time-sensitive investment opportunities.
How Much Can I Borrow with Bridging Finance in Farnham?
In the UK, bridging loans typically range from £50,000 to several million pounds.
Most lenders in Farnham will advance up to 70 to 80% of the property’s value, although higher loan-to-value products may be available with additional security.
The amount available depends on the value of the property being used as security and the lender’s criteria.
What Are the Benefits of Bridging Finance?
Bridging finance offers flexibility and rapid access to capital when time is critical.
Key benefits include:
Provides fast funding, often within a matter of days.
Allows buyers to secure property quickly, even before selling an existing asset.
Offers short-term flexibility, with terms from 1 to 24 months.
Can be used for property purchases, refurbishments, or development projects.
Helps investors and businesses act on time-sensitive opportunities.
How Much Does Bridging Finance in Farnham Cost?
Interest rates for bridging finance loans in Farnham range from 0.5% to 1.5% per month.
The costs depend on the loan-to-value ratio and borrower profile.
Bridging loans are more expensive than traditional mortgages because they are short-term.
In addition, there may be arrangement fees (typically around 2% of the loan amount), valuation costs, and legal fees.
While costly in the short term, they can be highly effective for buyers who need to move quickly or release funds tied up in property.
How Long Does It Take to Arrange Bridging Finance in Farnham?
One of the key advantages of bridging finance in Farnham is speed.
A bridging loan can often be arranged within 5 to 14 days, depending on the complexity of the transaction and the speed at which valuations and legal checks are completed.
In urgent cases, some lenders can release funds in just a few days.
Are There Risks with Bridging Finance?
Bridging finance comes with risks if not managed carefully. Since loans are secured against property, failure to repay on time could result in repossession.
The high monthly interest also makes it unsuitable for long-term borrowing.
For these reasons, bridging loans should only be used when a clear repayment strategy, known as an “exit plan”, is in place.
What Security Do I Need for a Bridging Loan?
Most bridging finance is secured against residential or commercial property; however, land or other high-value assets can also be used as collateral.
Lenders usually require a first or second charge on the property to protect their interest. The stronger the security offered, the more competitive the loan terms are likely to be.
Do I Need an Exit Strategy for Bridging Finance?
Every bridging loan requires a clear exit strategy that shows how the loan will be repaid.
This could be through the sale of a property, refinancing onto a longer-term mortgage, or another form of business funding.
Without a viable exit strategy, lenders will not approve the application, as bridging finance is intended for short-term use only.
Request a Free Consultation
Bridging finance in Farnham is a fast and flexible solution for property purchases, developments, and time-sensitive investments.
While more expensive than traditional lending, it offers borrowers immediate access to funds and enables them to complete transactions quickly.
Contact our specialist lending team today to explore bridging finance in Farnham GU9 7 options and find the best solution for your needs.
Other Services We Offer
At Specialist Mortgage Lenders, we offer a wide range of services; some of these include:
First Time Buyer Mortgages
Buy to Let Mortgages
Secured Loans
Commercial Loans
We cover Farnham (Surrey)