When it comes to buying property in the UK, speed is very much of the essence. Cash buyers have all the advantages, able to swoop in quickly and snap a sale before traditional buyers reliant on a mortgage have barely got their paperwork sorted. It can seem unfair, especially if you are gazumped on a dream property - surely, there’s an answer.
And there is. Bridging finance is a powerful funding tool that provides the rapid response needed to snatch opportunities and work around the tortoise-like nature of standard mortgages - but how fast is it, and how does it work in reality? At Clifton Private Finance, we’re experts on bridging finance - especially when it comes to getting it in place quickly. Let us tell you how.
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What is Bridging Finance?
We’re written in depth on bridging finance here at Clifton Private Finance. A short-term funding solution for property purchases, bridging finance is one of the key tools for property buyers across the UK. To understand more about how it works, its upsides and downsides, and whether it’s right for you, read our comprehensive Guide to Bridging Loans. But how can it be so rapid?
The Weight of Mortgages
To understand the speed of bridging finance, it’s important to first understand the other side of the coin - the traditional mortgage. Mortgages have been used for thousands of years to change ownership of property from one person to another, and are now the primary lending structure for buying houses and land.
As a long-term loan, there’s plenty of risk associated with a mortgage from the perspective of a lender. They don’t really want to go through the administrative challenge of repossession and resale, and would far prefer a solid and trusted borrower who pays their debt with interest every month until the sum of the borrowing is finally repaid, often 25 years later. Combined with the need for responsible lending and making sure the needs of the borrower are fully considered, mortgages are somewhat complicated financial arrangements with in-depth valuation and underwriting to make sure everything is perfectly in order.
All these checks and balances take time. From the moment you apply for a mortgage, to that day that the money is transferred to the seller to complete the contract, people work like busy bees in the background, checking the legal status of the land, your personal credit history, the provenance of your deposit, and a whole lot more. Only once all that is done to satisfaction, is the mortgage put in place.
This means even the most efficient mortgages take weeks, and any hiccoughs along the way can easily stretch that to a couple of months.
It’s not the humble mortgage’s fault - it’s a solid framework for long term financial security, but it does make them a little less flexible than the speedy property market wants.
The Power of Bridging Finance
One of the key aspects of bridging finance is that it’s short term. This is not a funding option that you expect to stretch on for years, but something that provides money right now under the expectation that it’s coming back (along with interest) in a few months. Most bridging finance is done on 12 months terms, and it is only the very rare specialist finance that passes the two year mark.
That’s not to say bridging finance is irresponsible - far from it. When using bridging finance for a new home, it is fully regulated by the FCA and comes with a range of protections. But with a far lighter load of considerations, bridging finance has the flexibility needed to move quickly in a fast-paced environment.
The Boost of Broker-Lender Relationships
One of the other factors in speedy bridging finance is the ability to convey the essential information over to the lender. When you want your loan approved quickly, you want to speak directly to the decision maker at the lender, put your case forward for why you’re a good borrower they can trust with a clear exit strategy, and give them the opportunity to say ‘yes’ without any further delays.
There’s no way that happens when it comes to walking into one of the high street banks to apply for a mortgage. You’re so far removed from the final decision making process, that it can feel like standing in an endless queue. Similarly, trying to make your own bridging finance application directly to a specialist lender has its own hurdles - complex online forms and no real way to stand out from the crowd.
The absolute best way to make sure you’re considered quickly is to be introduced by someone the lender trusts - no one does this better than Clifton Private Finance.
Our established broker-lender relationships cut through the red tape to expedite your application. We have spent years building up strong connections with the many lenders that make up the UK bridging finance marketplace, so when you come to us for your bridging finance needs, you know you’re jumping to the head of the queue.
The Smoothness of Pre-Approved Applications
Another specialist broker advantage we provide our customers is our expertise when it comes to making applications. We know the criteria the lenders are looking for, we know which lender prefers one thing and which lender likes another, we know which lenders are swamped at the moment and which have cleared their desks and are likely to move quickly on new application. We know the level of funding you’re likely to secure and the evidence you will need to show to get it.
And we help you with all of it.
By partnering with us, your application process doesn’t take days or weeks, it can be brought down to a few hours. When time is of the essence, the expertise of a specialist bridging advisor makes all the difference.
The Advantage of Rapid Bridging Finance
What does the speed of bridging finance bring you? In a rapidly moving property market, it can make all the difference:
- Secure your dream home immediately, making gazumping impossible
- Purchase auction property, knowing you can get the funds in place before the auction deadline
- Move fast to get a new home without waiting for your existing property to sell
- Get funding to pay for a care home and support if an emergency arises later in life
- Snap up an investment opportunity before someone else swoops in
- Buy land or property when market conditions make it a bargain, before things change
How Fast is Bridging Finance
You understand how it is we can get you bridging finance so quickly? But what are the numbers? At Clifton Private Finance, we’ve been able to get our clients substantial sums of bridging finance in a little over a week.
Speaking to Clifton Private Finance
There’s no time to waste! If you’ve got time pressures and need to finance a property purchase as soon as possible, then we at Clifton Private Finance have the answers. Call us immediately to speak to a specialist bridging finance advisor and let us get the ball rolling to your rapid funding solution.
