Bridging Finance is usually required because a property transaction has to be completed quickly before cash is available from other sources such as property sale or from a conventional mortgage loan.

Bridging Finance can be a very effective means of short term finance to enable a beneficial transaction to complete which would otherwise be lost but as they are more expensive than standard mortgage loans Bridging Finance should only be used when they can be repaid or refinanced within relatively short timescales.

However it may be that a single charge on an existing property is all that is required to fund a new property acquisition. Each lender will have their own lending criteria but it is usually possible to set up bridging finance for advances up to 80% of the current valuation of the combined properties less any existing mortgages on those properties. In some exceptional circumstances it may be possible to obtain bridging finance on even higher “loan to vale” multiples (e.g. up to 90%)