Bridging Loans

Dynamo understands the importance of getting access to finance quickly as and when you need it.

Bridging loans are there for those moments when you need swift access to finance on a short-term basis. Our specialist team work with both high-street banks and specialist lenders to help you secure flexible finance that suits your personal requirements with funds usually available in an average of three to four weeks.

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What is a bridging loan?

A bridging loan is a short-term finance solution to help raise funds quickly until a longer-term solution can be found. They are priced monthly as you would usually pay the loan back in a matter of months. Interest is higher than on a standard residential mortgage and is paid in a lump sum at the end along with the original amount borrowed and any arrangement fees. A bridging loan is a secured loan meaning that there must be an asset to set against it. This can be one property or several, but you risk losing this asset if you cannot repay the bridging loan.

What can bridging loans be used for?

Short-term finance can assist in many different circumstances including:

To prevent a purchase chain from breaking
Land purchases prior to development
Buying property at auction
Property development, renovation and refurbishment
Purchasing uninhabitable or unlettable properties (e.g. investment properties with an EPC rating of F or G)
Securing ongoing residential purchases prior to the sale of your own (including older customers downsizing who do not qualify for mortgage lending)
Purchasing below market value
Short-term second charge funding
Paying off debts prior to obtaining longer-term finance
Commercial and residential purchases that require change of use
Cash flow difficulties
Avoiding repossession
Probate and inheritance tax bills

Case Studies

Seamless property transition

A client wished to purchase a new residential property before the sale of their current property had concluded. As Early Repayment Charges applied on their current mortgage, they transferred this to the new property but required additional funds to complete the purchase. We were able to use a bridge against both properties in addition to their existing mortgage to enable the purchase to go ahead. The client was left happy and satisfied as they did not have to sell their original property in order to purchase the next. (November 2024)

Consultant: Josh Chan-Marshall

Diversifying portfolio with an HMO auction purchase

A client came to us looking to purchase a 9-bedroom HMO at auction. We had a 28-day window in which to complete and needed a lender that could work to this deadline. Not only were we able to source a solicitor firm to assist with the purchase within the available timeframe, but we were also able to facilitate access to the property for the lender. Our dedicated team processed the application and enabled completion to happen a day early. This purchase is the client’s biggest to date and a substantial addition to their portfolio. (September 2024)

Consultant: Alex Penny

Major improvements to auction purchase

A client came to us looking for a bridging loan in order to do renovations on a house that they had purchased at auction – the property was uninhabitable in its current condition and needed major renovation to allow the client to go to market and sell for a profit. We were able to complete a bridging loan in two weeks from submission which will allow them to complete the renovation in a timely fashion and start their next project using the profit from the sale. (August 2024)

Consultant: Jake Cumber

Bridging Loans

Dynamo understands the importance of getting access to finance quickly as and when you need it.

What can bridging loans be used for?

Case Studies

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