Residential bridging loans: how can they be used?

Are you looking for a short term loan secured against a property? A residential bridging loan could be the answer. Residential bridging has become increasingly popular in recent years: gross contributor lending in 2017 reached £534.1million, with the most recent bridging trends report showing that regulated loans have increased their market share in the last quarter. And despite the historical reputation of bridging loans, they are now better regulated and better priced than ever before.

Residential bridging loans can therefore comfortably be used for a number of residential property transactions. From purchasing residential property at auction to meeting mortgage delays, or even refurbishing a residential property, bridging finance can provide a short term solution.

How is a residential bridging loan regulated?

Regulated bridging finance is regulated by the Financial Conduct Authority (FCA) and it is therefore heavily scrutinised. For lenders, this means there is a strict level of responsibility that must be adhered to. Resultantly, there are only a limited number of lenders who will operate in this area, as the extra administrative work involved means such loans can be very long-winded and ultimately less profitable for lenders.

Fortunately, our wealth of experience in this area means we have developed excellent relationships with the lenders who will offer regulated residential bridging loans. If you need residential bridging finance, we will use our creative and persistent approach to assist you. Your solution will come from either a bridging lender or a mainstream bank, and will be fully regulated as per FCA regulations.

We have organised residential bridging loans for our clients on a number of occasions. Residential bridging finance doesn’t just have to be for the purchase or refurbishment of property, either. For example, we’ve organised bridging loans against residential property for a client seeking to raise finance for business finance. You can check out the full range of our bridging case studies here.

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