Bridging Finance for Property Deals That Need to Move
Beacon Finance Brokers helps property investors, developers and businesses explore bridging finance for acquisitions, refurbishments, auction purchases, property chains and other time-sensitive transactions across Scotland and the UK.
Discuss Your FinanceWho We Help
Property Investors
Bridging finance for property acquisitions, refurbishments and other short-term funding requirements.
Developers
Short-term finance for property projects where timing and funding structure are important.
Landlords
Finance for acquisitions, refurbishment and transactions requiring a short-term funding solution.
Business Owners
Bridging options for businesses where property or timing creates a short-term funding requirement.
When Bridging Finance Can Help
Property Purchase
Bridging finance to complete a property purchase within a tight timeframe, ahead of longer-term finance being arranged.
Auction Purchases
Short-term funding to meet the fast completion deadlines typical of auction property purchases.
Property Chain Breaks
Finance to bridge a gap in a property chain, allowing a purchase to proceed without waiting on a related sale.
Refurbishment
Funding to complete refurbishment works ahead of refinance or sale, particularly where a property isn't yet mortgageable.
Development / Conversion
Short-term finance for smaller development or conversion projects, ahead of longer-term funding or sale.
Refinance Before Sale
Bridging finance to refinance a property in the short term, ahead of an intended sale or longer-term refinance.
Why Bridging Finance Is Different
Bridging finance is generally short-term funding, and how a lender assesses suitability can depend on a combination of factors specific to the deal, including:
- The property
- The amount required
- Loan-to-value
- The intended term
- The borrower's circumstances
- The proposed use of funds
- The lender
- The repayment or exit strategy
The lender that appears most attractive on headline terms isn't always the lender best placed to complete the transaction - matching the right lender to the specifics of the deal matters.
The Exit Strategy Matters
A bridging loan is temporary finance, so understanding how the borrowing is expected to be repaid is an important part of assessing the deal.
Potential exits can include, where appropriate:
- Sale of the property
- Refinance onto longer-term finance
- Sale or refinance of another asset
- Completion of works followed by refinance or sale
200+ Lenders. A Whole-of-Market Approach.
We have access to 200+ lenders through our established panel. Where appropriate, we can also approach lenders outside our established panel to explore suitable finance options for your circumstances.
What Bridging Lenders Look At
- Exit strategy - sale or refinance
- Value of the security property
- Loan term length
- Scope of refurbishment works, if applicable
- Planning status, where relevant
- Borrower's experience with similar deals
- Deposit or existing equity
- Credit history
How It Works
1. Discuss Your Requirement
Tell us what you're trying to achieve and we'll talk it through.
2. Understand the Deal
We look at the details of your situation and the finance required.
3. Explore Suitable Options
We research relevant lending options and explain them in plain English.
4. Progress the Application
If you decide to proceed, we help in managing the application process to completion.
Related Finance & Sectors
Explore other finance solutions and specialist sectors relevant to your requirements.
Commercial Mortgages
Finance for the purchase or refinance of commercial property.
Development Finance
Funding for ground-up development and heavy refurbishment projects.
Buy-to-Let Finance
Finance for landlords with single properties or portfolios.
Care Home Finance
Financing for care home purchase, refinance and expansion.
Hospitality Finance
Mortgages for guesthouses, B&Bs and small hotels.
Dental Practice Finance
Mortgages for dental practice premises and practice acquisitions.
Frequently Asked Questions
What is bridging finance?
Bridging finance is short-term property finance used where timing or circumstances make temporary funding appropriate, ahead of a longer-term mortgage, sale, or refinance being in place.
When might bridging finance be suitable?
Bridging finance can be suitable for situations such as property purchases, auction deals, breaking a property chain, refurbishment projects, or refinancing a property before longer-term finance is arranged - provided a credible exit strategy is in place.
How quickly can bridging finance complete?
Completion times vary depending on the property, valuation, legal work, lender and complexity of the transaction. Some straightforward cases can complete quickly, though timescales should always be discussed against your specific deadline.
What is an exit strategy?
An exit strategy is how the bridging loan is expected to be repaid - typically through the sale of the property, refinance onto longer-term finance, or the sale or refinance of another asset. Lenders assess how credible the exit is before agreeing a loan.
What's the difference between an open and closed bridging loan?
A closed bridge has a fixed, known exit date - such as a confirmed sale completion. An open bridge does not have a fixed exit date, which can give the borrower more flexibility but may affect the lending options available.
Can I use bridging finance for refurbishment?
Yes - bridging finance is commonly used to fund refurbishment ahead of refinance or sale, particularly where a property needs work completed before a standard mortgage lender will lend against it.
Can bridging finance be used before refinancing onto a commercial mortgage?
Yes - bridging finance is often used where a longer-term mortgage isn't yet in place, provided a credible exit route such as refinance onto a commercial mortgage can be shown.
Speak to a Broker
Tell us about your deal and we'll come back to you to discuss your requirements.
Discuss Your Finance