Short Term Lending: An Alternative to Bridging


Short Term Lending

What do you do when an older retired client calls and asks you how they can downsize without selling their old home first, or when your client has found their dream home before their current one is even on the market?


Do you,


  • Sigh and put the enquiry on a post-it note at the back of your desk,
  • Drop everything you are doing and enthusiastically start researching the market,
  • Pass the enquiry to a packager, or
  • Pass the enquiry to a bridging provider?

If you’re in the enthusiastic group, then that’s great; add us to your list of options. If you are in any other group, then why not allow us to spend a few minutes telling you about our short-term lending product. We think you’ll like it.


The Furness Building Society short-term lending product is an interest only product which lasts two years, and as it has no ERC’s it can be used for shorter periods. It is ideal for those customers who have identified a property but for whatever reason are not going to be able to sell their current one first. It can be cheaper than bridging, and we can lend 100% of the purchase price, subject to a maximum LTV of 60% across both properties. If the loan can be supported on one property alone then we’re happy to use just the new or the old property as security. We can even split the loan so that there is a capital and interest repayment portion on the new property over a longer time-frame (subject to the mortgage being redeemed by age 80) and the short-term lending product can be secured on the property which is to be sold.


As the loan is serviced, we will need to undertake an assessment of affordability, but the short-term lending product is interest only and as the repayment strategy is ‘sale of property’, we do not need to include the cost of a separate repayment strategy within the affordability calculations.


Click here for full details (including APRC figures)


The product is suitable for a variety of purposes and the case studies below explain just two of the different ways we can help your clients. 


Cookie policy

Like most websites Furness Building Society use cookies, and in order to continually improve our website, we collect non-personal data through cookies. By continuing to use the website you are accepting the use of these cookies. To find out more read our Cookie Policy.