Bridging Finance can be an incredibly successful funding tool when understood and used correctly. It allows you to buy property to refurbish, improve or simply enables you to secure a purchase before you have sold your own property (rather than lose the property you want to buy),it also allows you buy uninhabitable property or land without planning permission, which mainstream mortgage lenders will not consider. Many bridging products have the added benefit of rolled up or deducted interest meaning no term repayments are required and that means you do not have to prove you earn sufficient money to warrant the borrowing as the loan is based on the security & strength of the exit (ie: refinance or sale).
If you are uncomfortable with how bridging works or the types of products to avoid, or you just want to understand the products and which ones are available to you, consider using a broker. They know their market, are up to date with the newest products, have access to standard bridging lenders but also have access to many private and bespoke lenders that do not deal directly with borrowers. By using a broker, you can be certain you have all options available to you. There are some brokers that do not charge any up front fees and any fees or commissions they earn are only payable if your loan proceeds to completion and they are then deducted from the advance so you are not having to find additional money to pay fees. Most brokers can also help you arrange refinance on a long term basis if that is your chosen exit route.
