Covid 19 Status

In line with HM Government requirements to fight the spread of Covid-19 we have measures in place to ensure that we protect our staff, their families and the wider community, but also to ensure that there is minimal disruption to our customers.

Your access to online Multi Agency Credit Reports, Expert Help and Account Management remains unaffected. We take great pride in the support that we provide to our customers and throughout this period will do all we can to minimise the impact on our services. While the country remains in lockdown we will continue to support your queries via a dedicated and experienced team that will be securely working from home, and supported by a Management Team that will continue to be based at our head office and who will be able to provide customer support as required.

The security measures that we have in place to protect your Personal Data, in line with our Privacy Policy, will mean that some elements of our personalised support are affected during this period as our support team will be working with anonymised data when working remotely. Freephone access to our Credit Analysts has been removed during this period while we focus our efforts on continuing to reply to all of your emails and secure messages within one working day.

Thanks for your understanding, and we hope to have full customer support available as soon as possible and wish you well during these challenging times.

Bridging Loan

What is a Bridging Loan?

A Bridging Loan is a short-term, high interest loan that helps borrowers purchase a new house while waiting for their existing home to be sold.

If the sale of the existing house has been contracted (i.e. contracts have been signed and exchanged) then the Bridging Loan is known as a ‘closed bridging loan’. A closed Bridging Loan will have a fixed settlement date as sufficient funds to fully repay the debt are confirmed from your existing house sale. If not, it is known as an open-ended bridging loan, with no definite repayment date.

Bridging Loans can be exceptionally expensive because the interest accrued in the time between property sales can quickly add up, meaning you could have to pay back a lot more than you originally borrowed.

Generally, any Bridging Loan lender will want proof that your current property is on the market and usually will ask to see a copy of the mortgage offer for the new property. As Bridging Loans are often for substantial amounts, they also need to know that you can cover the interest payments and how you will settle the outstanding balance if the sale of your existing house falls through.

Normally a Bridging Loan will be limited to a 12-month period. For obvious reasons, Bridging Loans should be avoided as they can be financially damaging, especially if open-ended. Always take professional financial advice before considering a Bridging Loan.

Q: How much does a Bridging Loan cost?

A: Bridging Loans are often subject to initial fees (between 1% and 2% of loan amount) plus higher-than-average interest rates, so they are an expensive form of borrowing – especially over a long period.

Jargon Buster

Use the links below and the resulting list of terms on the right to locate the term you are looking for. If you can't locate it, please get in touch.