Alternatives to bridging loans

Alternatives to bridging loans

Bridging is not always the right tool, eight alternatives suit different circumstances:

1. Renovation mortgage. Purchase plus renovation costs on uninhabitable property, up to 80% LTV, no renovation experience required.
2. Self-build mortgage. Staged payments aligned to construction, up to 80% of Loan to Gross Development Value (LTGDV).
3. Further advance. Additional borrowing on the existing mortgage, typically cheaper and without bridging exit fees.
4. Second charge mortgage. Borrowing against home equity without refinancing the first mortgage, with first-charge lender consent.
5. Buy-to-let mortgage. Where the property already qualifies, the term product beats the bridge.
6. Development finance. For larger construction projects, funded against project milestones.
7. Unsecured loan. Smaller, shorter needs without collateral.
8. Secured loan. Larger amounts against an asset.