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Bridging Finance

Unlocking Opportunities for Smooth Property Transactions

At Balanced Financial Services we understand that navigating the world of property transactions can be complex and challenging. That's why we offer bridging finance solutions to help bridge the gap between buying a new property and selling an existing one. In this jargon-free explanation, we'll explore what bridging finance is and how it can be used to facilitate seamless property transactions.

What is Bridging Finance?

Bridging finance is a short-term finance which provides fast funding. It is designed to provide temporary financing facility until a more permanent source of funding, such as a term mortgage or property sale, becomes available. Bridging finance is typically secured against the property being purchased or an existing property owned by the borrower.

How Can Bridging Finance Be used

1. Property Chain Breaks:

Bridging finance can be a lifeline when you find your dream property but haven't yet sold your current one. It allows you to secure the new property by providing the necessary funds for the purchase, giving you time to sell your existing property without missing out on the opportunity.

2. Auction Purchases: Buying a property at auction often requires immediate payment. Bridging finance can provide the necessary funds quickly, allowing you to secure the property and complete the purchase. Once the property is acquired, you can explore longer-term financing options, such as a mortgage or remortgaging.

3. Property Renovations: If you're planning to renovate a property before selling it, bridging finance can provide the funds needed for the purchase and renovation costs. Once the property is renovated and enhanced, you can sell it at a higher value, repay the bridging loan, and potentially make a profit.

4. Property Development: Bridging finance can also be used for property development projects. Whether you're building new properties or converting existing ones, bridging finance can provide the necessary funds to acquire the property, cover construction costs, and manage the project until it's completed. Once the development is finished, you can refinance or sell the properties to repay the bridging loan.

5. Time-Sensitive Purchases: In some cases, you may come across a property that requires immediate action, such as a limited-time investment opportunity or a property in high demand. Bridging finance can help you secure the property quickly, giving you the time needed to arrange long-term financing or sell other assets to repay the loan.

Bridging finance offers a flexible and convenient solution for property transactions, allowing you to bridge the financial gap between buying and selling properties. Whether you're facing a property chain break, purchasing at auction, renovating, or undertaking a development project, bridging finance can provide the necessary funds to seize opportunities and ensure a smooth transaction process. At Balanced Financial Services, we specialise in bridging finance and can guide you through the process, tailoring solutions to your specific needs. Contact us today to explore how bridging finance can work for you.

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