Bridging Finance

What is Bridging Finance?

Bridging finance is a short-term loan that serves as a “bridge” to enable homeowners or business owners to purchase a new home or property before the existing one gets a buyer.

  • TIC Finance offers loans between 3-12 months.
  • Funding can be arranged within 72 hours.


TIC Finance’s Bridging Process



Client provides TIC Finance with property information which includes: Redemption Statement, Information on charges and any areas of outstanding on property/properties owned and reasons for needing a bridging loan. This can also be done by providing us with an up to date credit file. Alongside an exit plan will be discussed which will show us how you intend to repay us.



If both parties are satisfied with terms and conditions. TIC Finance will propose an offer on the basis there is sufficient equity to secure the loan.



Following the loan agreement TIC finance can proceed with legal paperwork and documentation and have funds transferred within 72 hours to your solicitors.


Breakdown of the process

No matter what type of bridging loan you want, the process is the same. It’s important that you familiarise yourself with the process.

Step 1: The borrower provides the lender with a summary of the deal, main reasons for wanting a bridging loan, the security available, and a clear repayment strategy.

Step 2: The borrower presents evidence (if applicable) of the new property purchase to the lender and proof of the exact price to be paid

Step 3: The lender issues the borrower an offer letter stating the terms of the proposed bridging finance and what is required to obtain the loan.

Step 4: The lender makes an accurate valuation of the value of the property to assess loan terms and amount.

Step 5: The borrower signs all the required documentation

Step 6: The bridging funds are sent to the borrower through their preferred payment channel

In most cases, the process takes around 2 to 15 days at TIC Finance. However, depending on your case and the set of circumstances involved, this may vary.


Types of Bridging Loans TIC Finance Provides


Bridging Finance for Property Auction

If looking to purchase a new property at an auction but your existing property has not yet sold, a bridging loan for property auction could assist.

Obtaining bridging finance can allow you to pay the initial deposit (which is a certain percentage of the property value) as soon as the hammer comes down, and then complete the payments in the exact time stated on the auction contract.


Renovation and Development Bridging Loans

Planning to renovate a property or develop a piece of land into a residential or commercial property but in need of funds.

Once the renovations and land developments are complete, you can now repay the short-term loan as agreed on the contract.


Open and Closed Bridging Loans

In closed bridge loans, the borrower has a set date on which the loan will be repaid. It’s suitable for a borrower with a clear repayment strategy. For example, when the borrower has already signed a contract to sell a property and the completion date has been set or is fixed. Upon the sale of the property, the money will be used to repay the loan.


Common Reasons Why People Need Bridging Loans

Some years ago, bridging finance was not as popular as it is now, especially after banking deregulation. Before then, it was perceived as high risk, and the interest rates were very high. Currently, bridging finance has increased in popularity and individuals and small businesses are taking advantage of the many benefits these loans offer.

An increased number of individuals and business are now using taking advantage of the availability of short-term bridging loans due to the short-term financing solution and flexibility they provide.

Because the loan is secured against a property at TIC Finance, we don’t need to check your credit history and having a bad credit rating is okay.

The loans are helpful in various circumstances, including quickly securing property while still waiting to sell an existing one, building homes or other property, temporary cash flow cover, buying property at a discount, auction property sales, property renovations and developments, un-mortgaged properties, and quick access to funds for business people. At TIC Finance we don’t mind what you need the money for, out helpful staff will help you secure a loan fast.


Unmortgaged properties

Investors looking to purchase properties that cannot have a standard or rather normal mortgage secured on them until corrective work is completed can immensely benefit from bridging loans. This may include property without a kitchen, bathroom, old floors, walls etc. or property that needs doing up for some other reason.

Renovating properties increases their market value which as a result enables the investors to sell them for a profit. That way, they are able to repay the bridging loans as scheduled and also increase their chances of securing long-term finances.

Another reason why people are obtaining bridging loans is because of the high-interest rates. The bridging loans interest rates are much higher compared to other loans. Therefore, people only use them in circumstances where short-term finance is required (usually 12 months or less).