ICF Financial Services

01482 638 300

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Bridging Finance

Bridging finance is becoming a more common source of funds as main stream lenders are still slow to return to previous levels of property based lending.

Bridging Finance

Bridging finance is becoming a more common source of funds as main stream lenders are still slow to return to previous levels of property based lending.

Bridging Finance is typically an interest only, short term funding facility - normally for up to 12 months and will be secured on land or property.

Lenders in this market are usually small independent players for whom speed of completion is important to help clients resolve temporary cash flow problems or to meet tight deadlines in property purchases.

Whilst advertised rates are from 0.65% per month, in our experience, the average cost of this type of finance is around 1.25% per month.

This means that it is not a cheap option, but it can provide a 'means to an end' solution to a particular borrowing need.

We can work together with clients to ensure that their ultimate exit (repayment) from this funding is managed as effectively as possible - for instance by arranging a refinancing package – although often, repayment will come via the property’s sale.

The initial amount borrowed generally includes the anticipated interest cost for the duration of the loan, so that interest payments do not always need to be made whilst the loan is in place.

Funds can be used for a variety of purposes, such as : to assist property investors when remortgaging their property purchases or to help businesses maintain a positive cash flow.

Many main stream lenders require that a property bought for ‘in cash’ must be owned for a number of months before it can be remortgaged. Bridging funding can often be used to acquire uninhabitable properties cheaply prior to renovation and being let prior to being remortgaged to more traditional lending after the qualifying period is past..

Call us on 01482 638300, or e-mail rich@icf-fs.co.uk, to discuss your needs.

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ICF Financial Services
2 Redcliff Road,
Melton, East Yorkshire,
HU14 3RS

Tel: 01482 638300
Fax: 01482 638302

ICF Financial Services/Alan Bell Mortgages
58 Flamborough Road,
Bridlington,
East Yorkshire, YO15 2JN

Tel: 01262 213333
Fax 01262 333471

ICF Financial Services
Medina House,
2 Station Avenue,
Bridlington, YO16 4LZ

Tel: 01262 602456
Email: info@icf-fs.co.uk