So a mortgage won’t work, but we don’t want to put in that much cash either. Instead, we’ll use bridging finance – a form of short-term funding (usually up to a year), which is specifically intended for this kind of situation. Whereas mortgages are typically for up to 75% of the property’s value, bridging normally goes up no further than 70%. It’s more expensive than a mortgage – the interest rate is usually in the range of 0.75%–1.5% per month, plus fees of around 2% of the total loan amount – but it’s quick and easy to arrange.
