Bridging Finance

Bridging finance is a short term funding solution designed to help property buyers, investors, and developers move quickly when timing is critical. It is commonly used where traditional mortgage finance is too slow, unsuitable, or unavailable.

At GPS Financial, we arrange bridging finance for a wide range of scenarios, from auction purchases and chain breaks to refurbishment and conversion projects. Our role is to help structure the loan correctly from the outset, with a clear focus on cost, speed, and exit strategy.

What Is Bridging Finance

Bridging finance is a loan secured against property or other suitable assets, intended to cover a temporary gap in funding. It is typically repaid through a defined exit, such as the sale of a property or a refinance onto longer term finance.

Unlike traditional mortgages, bridging finance is assessed primarily on the value of the security and the strength of the exit plan, rather than income alone. This makes it a flexible option for borrowers with complex circumstances or time sensitive transactions.

When Bridging Finance Is Used

Bridging finance is commonly used in situations where speed or flexibility matters more than long term interest rates. Typical scenarios include:

• Purchasing property at auction with a fixed completion deadline using auction bridging finance.
• Resolving chain breaks to allow a purchase to proceed using chain break bridging.
• Buying properties that are unmortgageable at the point of purchase
• Funding refurbishment projects before sale or refinance using bridging finance for refurbishment.
• Completing time critical or discounted property transactions.

Each case is different, which is why the structure of the loan and the exit strategy are so important.

How Bridging Finance Works

While bridging finance can complete quickly, it still follows a structured process:

• Initial assessment of the property, loan amount, and exit strategy
• Decision in principle from a suitable lender
• Valuation of the security property
• Legal work and due diligence
• Completion and release of funds

Speed is achieved through preparation and realistic planning, not shortcuts. Understanding this upfront helps avoid delays later in the process.

For an initial sense check on borrowing levels and costs, our bridging finance calculator is a useful starting point.

Why Use a Bridging Finance Broker

The bridging market is specialist and varied. Different lenders have different appetites for property types, borrower profiles, and exit strategies.

Using a broker helps to:

• Identify lenders suited to your specific scenario
• Structure the loan correctly from the start
• Navigate valuation and legal requirements
• Avoid common pitfalls that can delay or derail a transaction

Our role is to guide you through the process and help ensure the funding fits the wider plan, not just the immediate purchase.

Types of Bridging Finance

Bridging finance can be structured in different ways depending on the situation. We regularly advise on:

• Auction bridging finance
• Chain break bridging
• Bridging finance for refurbishment and property conversions

Each of these has its own considerations around timing, costs, and exit strategy.

Next Steps

If you are considering bridging finance, understanding the structure, costs, and exit strategy upfront can make a significant difference to the outcome.

Speak to our team to discuss how bridging finance could work for your specific situation.

Call 029 2267 7725 or email info@gpsfinancial.co.uk.