Your Guide To Bridging Finance

What is bridging finance?

The term bridging finance refers to short-term loans, which are usually used to 'bridge' a gap while the borrower secures alternative funding or a sale.

Bridging loans are repaid quickly with 12 months usually the maximum term of a loan.

In recent years bridging finance has gone from being viewed as a niche product, often used as a last resort, to a multi-purpose form of lending.

When bridging finance can help

Buying at auction

You want to buy a property at auction – which requires the buyer to complete the sale within a set time period. This can be up to 28 days but some auction houses will require completion within an even shorter amount of time, often 14 days. Obtaining the funds from a mainstream lender within that time frame is often impossible. Bridging finance can help you to access the funds quickly and easily – often within 48 hours – meaning the transaction can be completed on time.


You may struggle to get access to buy-to-let funding as the high street banks continue to tighten criteria. Bridging finance can help both new landlords and those with large property portfolios bridge a short-term gap, whilst a long-term financial solution is put in place.

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Second charge lending

You want to raise capital quickly, perhaps to complete on a business deal, but for many business owners there is often a delay in receiving commercial finance from their bank. With second charge bridging, as long as you have a residential property, you are able to use this as security against a bridging loan. This allows you fast access to funds to fill the short-term gap, whilst the necessary commercial finance is put in place, thereby helping you to grow your business by providing the necessary cash injection.

Perhaps your status is causing delays when it comes to mainstream lenders. Self-employed borrowers can find it difficult to raise capital because they are classed as non-status. Bridging finance, however, is lent against the value of a property so this is not a problem.

You want to buy a property that is deemed unmortgagable due to structural issues, or a lack of what is deemed as basic requirements (a kitchen or bathroom for example). High street lenders usually view such properties as too high risk to be mortgaged. Bridging finance can enable you to purchase the property and make the necessary renovations before seeking mainstream finance.

You may have a property that could be a lucrative investment once refurbishments are carried out. With a bridging loan the necessary funds can be advanced quickly so that renovations can begin.

You need access to funds quickly, perhaps to complete on a time-sensitive deal. Bridging finance can help. Fincorp can provide a loan within as little as 48 hours. And the loan is flexible with terms ranging from one month to 12 months meaning it can be tailored to suit your needs.


First charge
The legal charge on a loan determines the lender’s rank. A lender with a first charge over a property is first in line to receive any funds available from the sale of the property.

Second Charge
A lender with a second charge is ranked behind a first charge.

The capital is the amount being borrowed, i.e. the size of the loan.

Closed Bridge
A closed bridging loan is a loan that has predetermined exit strategy. In other words, the lender will have been informed of the date and the method in which the customer will be repaying the loan before the funds were released.

Open Bridge
An open bridge is a loan without an exit strategy in place. These have become increasingly common as very few bridging loans these days have a guaranteed exit.

Why Fincorp?

Unlike many specialist lenders, Fincorp is a principal lender, and as such, customers are able to get a decision immediately without having to wait for authorisation from anybody else. What's more, once an offer has been made by Fincorp (usually within a few hours) customers can feel assured that the lender will not break its promise.

Just a simple, competitive flat fee for the period of the loan, which you are free to repay at any time, or extend as you wish.

Fincorp specialises in residential property loans, primarily in London and the South East. It can lend anything from £100,000 to £5,000,000, up to 70% of the property value, secured on the property.

Latest News

Business as usual for Fincorp

Short-term bridging lender Fincorp has revealed plans to hire a new sales director to start in January 2016 and confirmed it is “business as usual” at the lender. The announcement comes after news that directors Nigel Alexander and Matthe
Posted on Dec 02, 2015

Fincorp launches first fees or no fees bridging

Refurbishment loan up to 12 months that “gives customers the choice”

Fincorp has broken with 27 years’ tradition as the market’s only no fees bridging lender to launch a bridging deal that puts the

Posted on Jan 27, 2015

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