Bridge Financing

Bridge Financing is only available when secured against a property and is usually used for instance  if you wanted to buy a house but you have not yet sold your own, they could also be used to get cash out of a property that you own and have some equity in and will generally release up to 75% of the properties current value, less your outstanding mortgage, one thing to bear in mind is that usually, you will have to get your existing lenders permission to put a second charge loan in place, if they fail to offer this your only option would be to take them out entirely and take out first charge Bridge financing. Although it has to be said nearly all of the mainstream mortgage companies are happy to offer their permission as they are secured with a first charge and as such will always be paid first out of any sale.

Bridging Finances lenders  will lend from £25,000 with no upper limited as it is secured against your property, although in reality for any loan of less than £50,000 it would normally be better to take out a short term personal loan from a bank, unless of course you have bad credit in which case bridge financing could be the only option available to you, in which case you should always make sure you have an exit strategy in place, this would be the sale of the property before the loan expires, or could be another source of income. Although you can sometimes get an extension, most lenders will want you to redeem the loan.