MOVA / Bridging Finance
Bridging finance.
Keep the exit in sight.
An auction purchase, a chain break or a gap before sale or refinance? Discuss the deadline, security and repayment plan before deciding whether bridging is appropriate.
Initial conversation at no cost · No pressure to proceed
Start with what matters to you.
You do not need to choose a product before getting in touch. Bring your plans and your questions; Steven will help you understand the next step.
Three things to clarify
Assess your bridging finance needs.
The purpose
Explain what the finance needs to achieve and why longer-term borrowing may not fit now.
The net funds
Interest and fees can affect both the cash available and the amount to repay.
The exit
A credible repayment route and a contingency are central to the discussion.
Start with how the loan will be repaid.
An exit might involve selling the property or arranging longer-term borrowing. Describe what needs to happen first and what could delay it. Expected refinancing is not the same as an agreed mortgage, and an expected sale price is not a completed sale.
Compare the cost, not just the speed.
Bridging can carry higher costs than longer-term borrowing. Interest may be paid monthly, retained from the facility or rolled up, depending on the terms. Ask for a clear view of the net advance, arrangement and exit fees, valuation, legal costs and total repayment.
- Consider the effect of a longer holding period or a delayed sale.
- Understand the security and any personal guarantees before committing.
Buying at auction? Prepare before bidding.
Auction contracts can impose firm payment and completion deadlines. Read the actual auction conditions with a solicitor. Discuss the legal pack, property, deposit and possible finance route before you bid. An initial lending indication is not a guarantee of completion.
- Identify the auction date and contractual completion deadline.
- Allow for valuation and legal checks, not only a headline turnaround time.
- Keep a realistic exit and contingency in the plan.
Tell us who will use the property.
Whether you or a family member occupies or plans to occupy the security property can affect the regulatory position and available routes. Make the intended use clear from the outset so the enquiry can be handled appropriately.
Your questions, answered
Clearer on the detail.
Ready for the next step.
Have a question that is specific to you?
Can you guarantee completion by an auction deadline?
No. Valuation, legal work, underwriting and other conditions affect completion. Discuss the case before committing.
Does rolling up interest make the loan free each month?
No. Rolled-up interest becomes part of the amount owed under the loan terms. It still affects the overall cost.
What if I do not yet have a clear exit?
Say so at the start. The repayment plan needs proper assessment before a bridging route is considered.
A practical next step
Talk through your plans
with Steven.
An initial conversation can help you understand where to start and what information may be needed next.
Your property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. Some forms of commercial mortgage and buy-to-let mortgage are not regulated by the Financial Conduct Authority. Finance is subject to eligibility, underwriting, valuation and legal checks. Fees, charges and relevant terms will be explained before you choose to proceed.