The Client
A client was looking to purchase a property at auction, which came with a strict completion deadline. As the client was a foreign national, sourcing a lender able to lend could have been a difficult process.
The Scenario
As specialists in both bridging finance and foreign national mortgages, we were able to find a lender willing to consider the case within 24 hours. The property was valued at £200,000, with the client providing an £80,000 deposit.
The Solution
The first step was sourcing a viable exit strategy so the client would be able to clear the bridging loan, known as exiting the bridge. After referring the case to several suitable lenders, we provided the client with two competitive remortgage options. This gave the client confidence that they would meet the affordability criteria to repay the bridging loan, while also satisfying the bridging lender’s main requirement for a credible exit.
We requested all packaging requirements from the client in advance, so the lender could review the case as quickly as possible and the legal work could proceed without delay.
After meeting the completion deadline, we turned our attention to remortgaging the property, allowing the client to recoup the interest costs of the bridging loan and settle onto a long-term mortgage.
Summary
For more detail on how bridging finance works, including rates and lender criteria, see our full bridging loans guide.
Frequently Asked Questions
Can a foreign national get a bridging loan to buy at auction?
Yes, though the lender pool is narrower than for a standard UK resident applicant.
Working with a broker who specialises in both bridging finance and foreign national lending significantly widens the realistic options available.
What does it mean to 'exit the bridge'?
It refers to how the bridging loan will be repaid, typically through a sale or a remortgage onto a long-term mortgage.
Lenders want to see a credible exit strategy confirmed before the bridging loan is approved, not worked out afterwards.
Can an auction purchase be completed on a bridging loan within the auction deadline?
Yes, this is one of the most common uses of bridging finance.
Auction purchases typically require completion within 28 days, a timeframe standard mortgage lending rarely meets, which is where bridging finance fits in.
Why does a bridging lender care about the remortgage exit in advance?
Because the bridging loan is only ever a short-term solution, and the lender needs confidence it will actually be repaid.
Having remortgage options already in place before the bridging loan completes reduces risk for both the client and the lender.
Commercial Finance Network is a whole-of-market FCA authorised commercial finance broker working with property investors, developers, and businesses across the UK and internationally. We work across the full specialist bridging panel and will tell you which lenders will engage with your deal, what LTV and rate to expect, and how to structure the application before anything is submitted.
Commercial Finance Network is directly authorised and regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.
Call us on +44 1494 622 111 or email info@cfnuk.com to speak to a specialist directly.
Related Pages
- Auction Finance – completing property purchases within tight auction deadlines
- Commercial Finance – whole-of-market funding for businesses and property investors
- Bridging Loan Calculator – estimate monthly interest and total borrowing costs
- Bridging Loan Requirements – what lenders actually look for before approving a case