Avoiding mortgage delays: How a Residential Bridging Loan can rescue a client’s property purchase

It goes without saying that purchasing a property for sale should be an exciting moment for your client. However, as many brokers know, the process can quickly go off track. Too often sales fall through, with funding and mortgage delays, chains collapse, often with very little warning.

As a principal lender and a residential bridging loan provider, we offer quick and reliable funding when time is limited. Our Residential Bridging Loans give your clients the chance to complete their purchase without being held back by funding and mortgage delays or complications.

A residential bridging loan is a fast funding option that helps your client move on deals quickly. For example, if they are stuck in a chain, need to buy a new property before selling their current one, or are facing mortgage delays, bridging finance can provide a lifeline. It gives them access to the funds they need, with the loan being repaid once the existing property is sold or a long-term mortgage is in place. We provide these solutions to help support your clients through the most time sensitive transactions.

Buying before selling

Frequently, investors come across a property for sale they want to secure, but their own home has not yet sold. Perhaps they are still preparing it for market, or perhaps it has been listed but offers have not come through. Either way, if they wait too long, they risk losing the purchase. With a residential bridging loan, this stressful waiting period is no longer necessary.

A Residential Bridging Loan allows your client to move ahead with their purchase quickly. This is particularly useful in areas with limited housing stock or strong buyer competition, which is now very commonplace. It allows your client to act with the speed and efficiency of a chain free buyer.

Breaking a stalled property chain

A broken chain is one of the most frustrating situations that your clients are likely to encounter when investing in property. Your client might have lined up a new property, arranged the mortgage, exchanged contracts, and then find out that their buyer has dropped out. Without access to the right funding, this could mean losing the property altogether.

By utilising a bridging loan, your client can complete the purchase on time. We make the process as straightforward and efficient as possible. Therefore, if a chain falls apart, we can step in and help your client move forward with the purchase.

Buying at auction

Properties for sale at auction require fast action. Once the hammer falls, the buyer is typically required to complete within 28 days. However, this is often too quick for a standard mortgage to be arranged.

In these cases, we can provide a residential bridging loan to fund the purchase. This gives your client the ability to buy at auction with confidence, knowing that they have the funding secured to meet the deadline. After completion, they can refinance with a traditional lender or sell another asset to repay the loan.

Funding renovations and improvements

There are times when a property for sale is not immediately mortgageable. It might be missing a kitchen or bathroom. Alternatively, it might require structural work before a mortgage provider will consider it. These types of properties can give good returns on investment. However, they need funding that can be arranged quickly and without the same restrictions as a mortgage.

We provide residential bridging loans for exactly these situations. Your client can purchase the property, carry out the required works, and then refinance or sell once the improvements are complete. Whether it is a light refurbishment or something more extensive, we help you provide a practical solution for clients who are buying with improvement in mind.

Avoiding mortgage delays

Mortgages do not always move at the speed investors need. Too often surveys come back late, valuation issues arise, and underwriting decisions can take longer than expected. All of these delays can quickly derail a property purchase.

If your client is relying on a mortgage that is stuck in process, a bridging loan can be the alternative that gets them over the line. We step in to provide short term funding so that your client can complete their purchase without having to renegotiate or lose the deal altogether. Once their mortgage offer is finalised, they can use it to repay the bridging loan.

Mortgage delays are more common than many investors first realise. Having bridging finance as a backup can be the difference between keeping a deal alive and seeing it fall through. For brokers, having access to this type of funding means you are equipped to handle a wider range of scenarios your clients may face.

Working with us

Our focus is on outstanding service, speed, transparency, and flexibility. Our BDM’s work with brokers to make the process straightforward and efficient. We know that when a bridging loan is needed, time is of the essence. That is why we aim to give fast decisions in principal, clear terms, and direct communication throughout the process.

As an experienced bridging loan provider, have been lending actively and efficiently for over 30 years. We understand the way chains work, the challenges of auction deadlines, and the importance of getting funding in place without delay.

How our Residential Bridging Loans can help your client

Our Residential Bridging Loans provide convenient short-term finance on all types of investment properties and are ideal for property purchase, refinance, unlocking working capital or equity release. They are available in terms ranging from 3 to 24 months in the amounts of £250K to £4M. These loans can be secured by first and second charges on residential investments, student accommodation and HMO’s. Like a regular mortgage, a Residential Bridging Loan is secured as a charge against your clients’ property. They pay interest on the loan, and the amount they can borrow is determined by the property’s value and the period of the loan.

By working with us, you can give your clients that option and keep deals moving forward. We bring experience, reliability, and speed to every transaction, and we are here to help when your clients need it most.

So next time your client is at risk of missing out on a property for sale, give us a call on 020 8349 5190 or send us a message. Our experienced BDMs are on hand to answer any questions you may have and get the deal over the line.