Bridging finance
Short-term property finance where timing matters.
Intra helps clients arrange short-term property finance for purchases, refinancing and transactions where a conventional mortgage may not suit the required timescale or property circumstances.
Facility
Short-term property finance
Core requirement
Clear repayment strategy
Short-term finance
Bridging can provide time where a standard mortgage cannot.
Property transactions do not always move according to conventional mortgage timelines.
A purchase may need to complete quickly, a property may require refurbishment before longer-term borrowing is available, or an existing facility may need to be repaid while another solution is prepared.
Bridging finance can potentially create a temporary funding route, but because the borrowing is short term, the repayment strategy needs to be considered from the outset.
When bridging may be considered
Short-term borrowing can support a range of property transactions.
The appropriate route depends on the property, required timescale, leverage and proposed method of repayment.
01
Chain breaks
Short-term finance can potentially help where a purchase needs to complete before an existing property has sold.
02
Auction purchases
Bridging can be considered where completion deadlines are shorter than a conventional mortgage process would typically allow.
03
Property refurbishment
A property may require works before it becomes suitable for longer-term residential or buy-to-let borrowing.
04
Development preparation
Bridging may sometimes support acquisition or pre-development stages before a longer-term development facility is arranged.
05
Refinancing
Short-term borrowing can potentially be used to refinance existing property debt while a longer-term solution is prepared.
06
Capital raising
Clients may seek to raise funds against property for investment, business or other permitted purposes.
Exit strategy
A bridging application starts with how the borrowing will be repaid.
Bridging finance is intended to be temporary. Lenders will therefore usually want to understand the proposed exit before agreeing the facility.
The exit needs to be realistic, appropriately evidenced and compatible with the proposed term of the bridge.
Discuss your proposed exit
Bridging principle
The route out of the facility should be considered before the bridge is entered into.
Repayment routes
The exit can take different forms depending on the transaction.
Sale of the property
The property is sold and the proceeds are used to repay the bridging facility.
Residential refinance
The bridge is repaid using longer-term residential mortgage borrowing once the property and borrower circumstances are suitable.
Buy-to-let refinance
The property is refinanced onto longer-term buy-to-let borrowing once works are complete and lender criteria can be met.
Alternative repayment source
Some cases may involve another clearly evidenced source of funds, subject to lender acceptance.
Refurbishment
Some properties need work before longer-term finance becomes suitable.
A property may be structurally sound but require refurbishment, updating or other works before it meets the criteria of a conventional residential or buy-to-let lender.
Bridging can potentially provide a temporary facility while those works are completed, with a planned refinance once the property and circumstances meet longer-term lending criteria.
Explore bridge-to-let→What lenders consider
Bridging underwriting focuses heavily on the property and the transaction.
Lenders can assess the asset, borrowing requirement, repayment route and timescale alongside the client's wider circumstances.
01
Property value
The lender will consider the current value of the property and, where relevant, its expected value after works.
02
Loan size
The borrowing requirement relative to the property value can materially affect lender appetite and pricing.
03
Exit strategy
The planned method of repaying the bridge is normally one of the most important parts of the application.
04
Property condition
Some lenders are comfortable with properties that require refurbishment or are not immediately suitable for standard mortgage lending.
05
Timescale
The urgency of the transaction can influence both lender choice and how the application needs to be managed.
06
Borrower circumstances
Income, experience, credit profile, existing property commitments and wider financial position may also be relevant.
Time-sensitive transactions
Speed can matter, but preparation still matters more.
Bridging lenders can potentially work with shorter transaction timescales than conventional mortgage lenders.
However, valuation, underwriting, legal work and source-of-funds checks still need to be completed. A well-prepared case can therefore be especially important where a deadline is involved.
The Intra approach
Understand the transaction before selecting the lender.
We consider the property, timing, borrowing requirement and exit strategy before researching relevant bridging lenders.
Requirement
Understand
We establish the property, timescale, borrowing requirement, reason for the finance and proposed exit.
Case strategy
Structure
Your adviser considers how the facility could be structured around the property and wider transaction.
Lender criteria
Research
We review relevant lender appetite, leverage, property criteria, pricing structure and exit requirements.
Application
Apply
Once an appropriate route is agreed, we prepare and submit the case with the required supporting information.
Completion
Manage
Our team supports the case through valuation, underwriting, legal work, offer and completion.
Lender access
Bridging lenders can differ significantly in how they assess the same property.
Lender appetite can vary according to property type, condition, leverage, borrower profile, purpose and proposed exit.
Lender availability and suitability depend on the property, transaction, purpose, repayment strategy and individual circumstances.
Why Intra
Bridging finance needs more than a fast lender.
Structure, timing, legal work, property condition and the proposed exit all need to align for a short-term facility to work as intended.
01
Understand the transaction
We establish what needs to happen, by when, and what the borrowing is intended to achieve.
02
Review the property
Value, condition, proposed works and intended future use are considered alongside the borrowing requirement.
03
Assess the exit
The proposed repayment route is considered before lender research begins.
04
Manage the application
Our adviser and administration team support the case through valuation, underwriting, legal work and completion.
Related specialist finance
Explore related borrowing routes.
Short to long term
Bridge-to-Let
Short-term finance with a planned transition to longer-term buy-to-let borrowing.
Development projects
Development Finance
Finance for qualifying development, conversion and refurbishment projects.
Existing property
Property Refinancing
Review, restructure or potentially raise capital against existing property.
Frequently asked questions
Questions about bridging finance.
These answers are general. Available finance depends on the property, purpose, timescale, exit and lender criteria.
01What is bridging finance?
+
What is bridging finance?
Bridging finance is short-term borrowing secured against property. It can potentially be used where funds are needed before a longer-term mortgage, property sale or other repayment route is available.
02How quickly can bridging finance complete?
+
How quickly can bridging finance complete?
Some bridging lenders are structured to support time-sensitive transactions, but completion still depends on valuation, underwriting, legal work, documentation and the circumstances of the case.
03Do I need an exit strategy?
+
Do I need an exit strategy?
Usually, yes. The lender will normally want a credible and clearly evidenced plan showing how the bridging facility is expected to be repaid.
04Can bridging be used for a property that needs refurbishment?
+
Can bridging be used for a property that needs refurbishment?
Potentially. Some bridging lenders consider properties requiring refurbishment, although the extent of the works, property condition and proposed exit can all influence the lending available.
05Can bridging be used for an auction purchase?
+
Can bridging be used for an auction purchase?
Potentially. Bridging can sometimes suit transactions with shorter completion deadlines, subject to valuation, legal work and lender approval.
06Is bridging finance regulated?
+
Is bridging finance regulated?
The regulatory position depends on the purpose of the borrowing, the property and the individual circumstances. Some bridging transactions may be regulated by the Financial Conduct Authority while others may not be.
Some forms of bridging finance may not be regulated by the Financial Conduct Authority. The regulatory status of a transaction depends on the individual circumstances involved.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or other loan secured upon it.
Bridging finance
Discuss the property, deadline and proposed exit with an Intra adviser.
Tell us what you need to finance, how quickly the transaction needs to complete and how you expect the facility to be repaid.
enquiries@intra-pf.com