Typical examples of when bridge finance is needed include when people buy a second property before they've sold their first, or have just purchased a property at auction. Whilst slightly more expensive than conventional bank loans and mortgages, a bridging loan offers many advantages for the commercially aware borrower:

• Bridging finance can often be delivered within a few days of application

• Bridging loans can be non status, i.e. income details, historical accounts, cash-flow projections will not be required

• The loan is based on the open market value of the property, irrespective of the purchase price, meaning in certain circumstances 100% funding of the purchase can be achieved

• Bridging finance can be a useful tool when negotiating the purchase of a property as the borrower can complete within a short space of time.

A classic case for this type of funding is where a property is being purchased at a discounted price. The bridging loan would be used to fund up to 100% of the purchase price, whereas conventional funding would be based on the lower of the purchase price or valuation. The bridge is used for a short period (a couple of weeks or months) whilst the property is refinanced onto more conventional long term funding.

Although traditionally used to buy property or businesses, bridging finance can be used for a number of other reasons such as holidays, weddings, home improvements and renovations, or improving cash flow.

LDV Finance arranges commercial and residential bridging loans every day and funding is often completed within a week. We have relationships with all of the lenders and know which ones are most suitable for your situation, allowing us to ensure that finance is in your account as quickly as possible.