Bridging Loans: Seizing Property Opportunities with Speed and Confidence
- MRG
- 6 days ago
- 3 min read
In the fast-paced property markets of Essex, London, and the South-East, time is often of the essence. Opportunities can come and go in an instant, and traditional mortgage processes aren’t always quick enough.
Bridging loans offer a solution—providing short-term finance to bridge the gap between property transactions. At MRG Private Clients, we specialise in helping clients access these fast and flexible funding options to take advantage of key opportunities.
What is a Bridging Loan?
A bridging loan is a short-term loan secured against property, typically lasting up to 12 months. It allows borrowers to complete a purchase or access funds quickly while waiting for a property sale or longer-term finance to come through.
When Might You Use One?
Bridging loans are commonly used in several key situations. When there is a property chain break, a bridging loan can allow the purchase to continue without delay. If you’re buying at auction, bridging finance ensures you can meet the tight completion deadline, often within 28 days. It’s also a useful option when buying a property in poor condition that isn’t currently mortgageable - allowing you to complete the purchase and fund any essential renovations. Bridging loans are even used by business owners needing fast access to capital to seize commercial opportunities.
Types of Bridging Loans
There are two main types of bridging loans:
Regulated
Regulated bridging loans are short-term funding options regulated by the Financial Conduct Authority (FCA), mainly for people borrowing against their own home. They usually run for less than 12 months and come with better consumer safeguards, including checks to make sure you can afford repayments, clear information about fees, and proper ways to handle complaints. While they give you more protection, they do involve more paperwork and take longer to arrange than unregulated loans.
Un-regulated
Unregulated bridging loans provide quick money for commercial properties, rental investments, development projects, and second homes. Without FCA regulation, these loans typically move faster, have more relaxed lending rules, and can offer higher loan amounts compared to property values. The downside? They can come with steeper interest rates and fees. Since they lack the same consumer protections as regulated loans, you need to be more careful when picking lenders and reading the small print, making them better suited for people who know their way around property investing.
What to Consider Before Applying
Bridging loans are not without considerations. The most important is having a clear and credible exit strategy—how and when you intend to repay the loan. Without this, you risk high fees or, in extreme cases, the loss of your property. It’s also important to factor in the costs, as interest rates and fees are generally higher than those on traditional mortgages. And because bridging loans are secured, failure to repay can result in repossession.
How MRG Private Clients Can Help
This is where expert advice becomes invaluable. At MRG Private Clients, we work closely with our clients to assess their circumstances, clarify their repayment strategies, and source the most competitive and suitable bridging loan products. With access to a wide range of specialist lenders and a deep understanding of the local property market, we ensure speed doesn’t come at the expense of financial security.
Ready to Move Forward?
If you need fast, flexible finance and want to explore whether a bridging loan is right for your situation, get in touch with our team today. We’ll help you move forward with confidence.
Get in touch today to discuss your mortgage needs with our expert advisors.
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At MRG Private Clients, we believe in providing our clients with personalised guidance and support when it comes to making important financial decisions. We are based in Medway, Kent but offer our specialist mortgage services nationwide. Learn more about our specialist mortgage services >
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