BOOST YOUR BRIDGING
FINANCE CONFIDENCE

Myth one – Bridging finance is only an opportunity for bridging specialists

It’s often assumed bridging is for specialists only but it’s never been easier to access bridging loans. With more lenders than ever before offering short-term finance, there are now more products available, driving increased flexibility in how it can be used. Bridging finance, usually for a period up to 12 months, has become a credible alternative form of finance for brokers with permissions via their club or network.

We know from brokers we work with that more are taking their first steps into the bridging space, to help existing clients or because it’s a route to expanding their offering and diversifying. This can feel daunting but there’s a huge amount of support and education available. With years of experience in the regulated and unregulated market under our belt, at Market Harborough Building Society we’ll guide you through, with our dedicated team providing proactive support for you and your client. They’ll even keep in regular contact with them throughout their term. 

Myth two – Bridging is mainly used when a property chain breaks down

Fixing a broken property chain is the most common reason borrowers use bridging finance, accounting for 23% of cases in Q2 2024 according to Bridging Trends.

But there are other scenarios where it can come to the rescue, including raising funds for business purposes and property renovations. In addition, Bridging Trends reported that re-bridges made up nearly one in ten of all bridging transactions in Q2 2024, up from 6% in Q1.

Where bridging is concerned, the focus is on the security and exit strategy, rather than the client’s affordability. At Market Harborough, we consider any type of residential property as security, including complex properties, more than one title to charge and residential properties with light commercial usage.

Myth three – Sale of property is the best way to repay a bridging loan

Having a sound repayment plan or exit strategy in place is crucial when preparing a bridging finance application. Although sale of property is one of the most common repayment methods, others include:

• Sale of security or assets (including overseas assets)
• Sale of investments or shares
• Or a combination of methods
• Or refinancing with a longer-term mortgage

At Market Harborough, we take a flexible approach and are happy to consider a combination of different repayment methods.

YOUR bridging building society

We’re a bridging finance and complex case expert and have lots of experience providing loans for regulated and unregulated scenarios.

Combined with a flexible approach, our award-winning bridging products are a compelling, alternative form of finance. Lending up to £5m, we cater for straightforward and complex cases with fixed and variable rates available up to 70% LTV. We also offer an interest roll-up facility for up to 12 months and HNW clients can benefit from up to 60 months.

To find out more click here. 

Get in touch today!

Whether you’re a beginner or a pro when it comes to bridging finance, our dedicated Bridging Finance Team are ready to chat about what we can offer or provide guidance about how bridging finance works. Give them a call on 01858 412345 (option 2).

Sources:

Bridging Trends Q2 2024 report https://www.bridgingtrends.com/