Getting A Bridge Loan As An Expat
With the UK property market moving as fast as it does, bridging finance could be the ideal solution for you. Whether you are considering a residential purchase, an investment buy-to-let, or a ground-up development project – bridging finance offers the flexibility needed for expats.
How is bridging finance useful for UK expats?
- Fast financing – The UK property market is competitive, and securing a deal against competing buyers requires the cash in hand to act immediately. For this reason, bridge finance is the ideal solution as it can be organised quickly (3 to 5 days)
- Become a cash buyer – With the cash in hand, you can potentially find a fair deal from a keen seller who may be ready to offer a quick-purchase discount. So if you're in a position to move quickly, it may drive down the cost from a seller wanting to lock in a confirmed buyer.
- Seize the opportunities – Bridge finance allows you to take action without delay, giving you time to make important financial decisions. For example, an expat may have limited time to purchase a house during a UK visit, and longer-term mortgages may not be accessible - the traditional mortgage process can also be slowed down even further when you reside abroad. Therefore, a bridge loan is a perfect option if you cannot raise funds or secure a UK mortgage loan in time for a new opportunity.
- Suited to different scenarios – Besides residential property purchases, bridge finance can be used for many other situations such as property development, investment projects, or refurbishing your existing home to reach its full market potential. With short-term financing, you can renovate or refurbish your home to increase its appeal in a competitive market.
When it comes to bridging finance, expats should keep these points in mind
While bridging finance is a quicker alternative, it can come with additional challenges if you reside outside the UK. However, when working with specialist brokers, you get access to an array of suitable lenders who frequently deal with cases such as these.
Many of the challenges can be alleviated with the right broker, yet here are some points to bear in mind;
- Verification - Verifying your identity and income can prove challenging without a solid UK "footprint" - You're required to provide details you may not have whilst living abroad, i.e. UK bank accounts, utility bills, council tax records etc. Providing alternate sources of verification is possible, but not all lenders are willing to do so. And with fewer lenders, rates can sometimes be higher.
- Documentation - Lenders may require "wet signatures" on original documentation instead of signed and filed online documents – this may be a problem if you live outside of the UK. Moreover, your accounts will need to be prepared by an internationally-recognised accounting firm. If you have any documentation concerns, a specialist broker can assist you, speeding up the process considerably.
- Legal representation - You may be able to use "Dual representation"; using the lender's solicitor for both parties. Additionally, using a solicitor with experience in bridge finance from your country abroad is valuable, or one from the UK who can work in a different time zone. Having the right legal representation can speed up the process.
- Meeting in person – during the bridging process, a lender will likely want to meet in person; it would be ideal to plan your UK visits around a suitable time for both parties.
How quickly can I secure bridge finance as an expat?
The overall advantage of bridging finance for British expats is the speed at which they can be organised.
The process can be expedited further with the help of an experienced broker. They can drive down costs by getting a desktop evaluation, and help package your application in a way that would be a tempting offer to the right lender.
Depending on the complexity, bridging finance for expats can be secured just as quickly as local deals (within a week)
We can find you the right expat bridging loan to secure a UK property
Through our established network of private lenders, we can find you competitive rates on precisely this kind of "niche" lending.
Using their contacts, our expat bridging loan brokers will find you the most affordable financing possible within the terms you need.
