A short-term house purchase loan is a temporary finance product designed to help buyers complete a property purchase quickly, usually lasting between 3 and 24 months. Unlike traditional mortgages, which can take weeks or months to arrange, short-term loans are fast and flexible — making them ideal for buyers facing deadlines or funding gaps.
In London’s competitive property market, these loans are most often structured as bridging finance, helping buyers secure homes before selling an existing property, meeting auction deadlines, or completing on new-builds with fixed dates.
Chain Breaks – Buying your next home before selling your current one.
Auction Purchases – Meeting the strict 28-day completion requirement.
Refurbishment Projects – Securing properties that need work before refinancing with a mortgage.
Downsizing or Upsizing – Moving without pressure to sell your current property first.
Relocation – Securing a property quickly for work, education, or lifestyle changes.
Loan Term – Usually 3 to 12 months, sometimes up to 24 months.
Interest Rates – Typically 0.4% to 1.2% per month.
Fees – Arrangement fees (1–2%), plus valuation and legal costs.
Security – Secured against the property being purchased and/or your existing property.
Exit Strategy – Repaid via sale of an existing property or long-term mortgage refinancing.
Speed – Approvals and funds can be arranged within days.
Flexibility – Suitable for residential, investment, or mixed-use property.
Opportunity Access – Enables buyers to compete in London’s fast-moving market.
Higher Costs – More expensive than standard mortgages.
Short-Term Use Only – Designed for months, not years.
Exit Risk – Reliant on sale or refinancing within the loan term.
At Fraser Bond, we support London buyers, landlords, and investors by:
Independent Guidance – Assessing whether a short-term loan or bridging finance is the right option.
Lender Access – Introducing clients to trusted UK short-term lenders.
Application Packaging – Structuring cases for rapid approval and drawdown.
Exit Strategy Planning – Ensuring repayment through sale or long-term mortgage.
Investor Advisory – Aligning short-term loans with long-term property and portfolio strategies.
To secure a short-term loan for your London property purchase, explore bespoke finance solutions at FraserBond.com.
