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

Bridging loan for renovation

A client was referred to us seeking funds to renovate a property that they had recently inherited. They wished to make improvements that would enable them to sell the property at a higher value. With work due to start on the property shortly, we were able to complete a bridging loan in a timely manner to meet the deadline and release the necessary funds. Our client is now able to make the renovations and look ahead to their next venture. (September 2023)

Consultant: Jake Cumber

Assisting with a chain break

A client came to us with 10 days left to exchange on a residential purchase. They were in the process of selling both their main and secondary residences to fund the new purchase, but the second property sale fell through. We were able to arrange a bridging loan secured on the second residence and the new purchase. The offer was with the solicitor comfortably within the deadline and the clients have time to find another buyer for the second residence. (July 2023)

Consultant: Ben Tyler

Regulated bridge

Our clients had their house on the market but found their perfect onward purchase and didn’t want to have to wait for a sale to happen. Both applicants were over 70 years old which added to the challenges of finding a suitable lender for this specialist case. We were able to arrange a charge to be put on both their current property and the property they wanted to purchase, meaning that no deposit needed to change hands and our clients were able to realise their dream. (June 2023)

Consultant: Joshua Chan-Marshall

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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