Working with 3rd Parties to Ensure Multiple Sources of Finance Come Together Smoothly

Loan Amount:
£225,000

Property Value:
£375,000

LTV:
60%

Often, specialist finance is used to bridge the gap between financial transactions. Property purchases can be dependent on a chain of transactions coming together smoothly. Where these chains break, bridging loans can keep an investment moving.

However, sometimes a bridging loan can also be affected, or even dependent, on other forms of finance. One of our underwriters recently supported a borrower who was using our funding to purchase a property, but who was also using capital from another asset towards it.

We had to work quickly to make sure this all aligned well, and worked with the client’s exit strategy. However, this isn’t a problem for us, as using various sources of finance, namely capital from other assets, to purchase a new property is something we see regularly.

Mitigating risks by focusing on the long term

To ensure the external refinancing would be wrapped up in time to keep this investment going, we sought confirmation from the 3^rd party involved. What’s more, we worked with the borrower’s solicitor to ensure the source of the funds would be handled properly.

The underwriter also thoroughly went through the borrower’s personal details to make sure everything was accounted for. The valuation also confirmed the property held a lot of long-term potential, even with works needed to bring the asset up to scratch.

While the borrower planned to sell another asset for the exit strategy, there were also many other options available to them. As every 3^rd party we worked with for this deal confirmed there shouldn’t have been any unforeseen issues, we were happy to progress.

Specialist finance is designed with complication in mind

Property investment can be complicated. There are multiple priorities to align, and commitments to square. Doing all this has become difficult in the current economy, where deals are pulled and criteria is tightened.

But, it’s these circumstances where bridging finance shines. Our products are designed to fit in with these complications. These can include chain breaks, delayed refurbishment plans, or tricky business plans.

If your clients are worried about how their complications may derail an application, it should be remembered that all our deals are underwritten from day one. Meaning, we’ll be working on those complications from the get-go.

FAQs

How common are chain breaks in the current market?

Chain breaks have become more common in a market where delays, rising interest rates and tighter affordability checks are causing transactions to fall through. We often help clients bridge these gaps with short-term finance, so they can complete purchases without relying on chains holding together.

Where does bridging finance fit within property transactions?

Bridging finance sits at the point where speed and flexibility are critical. It allows buyers to secure a property quickly, cover urgent costs or unlock equity while they arrange longer-term funding. This makes it ideal for situations like chain breaks, auction purchases or complex refinancing.

Can I get a loan that covers multiple purposes at once?

Yes, we regularly structure facilities that cater to multiple requirements in a single transaction. Whether you need to refinance an existing charge, release equity and fund a new purchase simultaneously, or cover several investment priorities, we can tailor a solution to fit.

What enables you to move fast on complex cases involving multiple properties or priorities?

Our access to multiple funding lines and in-house capital means we are not reliant on one source of finance. This flexibility, paired with our streamlined underwriting, allows us to manage complex and multi-layered transactions without delay.