Bridging Loans
We are seeing more and more homeowners seeking advice after being mis-sold bridging loans as a way to “stop repossession”, especially unregulated loans. A bridge loan merely offers short-term financial relief to those facing eviction and is not designed to stop home repossession.
HMS will work with you and stop your mortgage lender directly or through the courts to help ensure that you and your family remain in your home.
How can we help? Request a callback
Why Avoid a Bridging Loan?
Huge fees
In addition to repaying the loan, there are a number of fees that you will need to cover. These include arrangement fees, broker fees, and sometimes even exit fees, all of which can add up and become overwhelming very quickly.
High interest
Compound interest added upfront and an even steeper default interest rate that comes into play after expiry will be built into your bridging loan. This interest accrues on a monthly basis and will make your loan harder to repay as more time passes.
It will delay and then worsen your financial problems
Especially if you are already struggling financially, extortionate added fees and interest will leave you with an overall amount to repay that you almost certainly won’t be able to cover. You will probably lose your house in order to fund the loan repayment, the very thing that the bridging loan company promised that it would help prevent. All that you will have done is delay the process.
Bridging Loans: a Flawed Short-term Solution
Bridging finance is a temporary form of financing that is becoming increasingly popular. Although bridging loans were initially designed as a way to help “bridge” the gap between a home sale and purchase, they are now often used outside this original intended purpose.
Many homeowners facing eviction are currently taking out bridging loans for temporary financial relief. The problem, however, is that they are viewing these loans as a solution to their financial problems when they will often make their circumstances much worse.
Every client we have helped with a bridging loan confirms they wish they’d never accepted it.
Below is an example of how a bridge loan works and why it will not prevent the repossession of your home:
You own a property worth £400,000 but you owe £200,000 on your mortgage that is in £20,000 mortgage arrears.
You seek advice and are told that a bridging loan is the answer. A loan is offered to repay the £200,000 to your mortgage lender.
The loan is actually made up of compound interest added upfront at 1% per month for 12 months, and there are further administration costs and a substantial broker fee added to the loan. This equates to a loan of approximately £245,000 after 12 months.
This is equal to £3,750 a month, which is about £3,000 a month MORE than your original mortgage.
After a short 12 months, you are probably not in a position to secure a normal mortgage that is almost 25% higher than the last one you could not afford.
Following this 12 month period, it is also unlikely that you are ready to move and you will be charged a default fee of 3% followed by a 3% per month default interest rate.
Therefore by 18 months, your outstanding balance will be a staggering £296,450.
That will put you beyond most forms of being able to refinance the property and it will have to be sold.
By the time you accept the property has to be sold, it will take several months to coordinate, all the while now costing you over £7,000 per month.
The increasing cost will soon outstrip your equity and – this is the ideal scenario and design of the lender all along – if you don’t manage a sale, they will repossess you.
This process is worryingly a license to print money and that is why they will try to force you down an unregulated route.
Find out more information about the repossession process by clicking on one of the links below
How to Stop Repossession
1. Don’t take emergency finance
Other companies may have misled you into believing that a bridging loan or short-term finance is your best or even only choice. That’s not true. The temporary relief will be short-lived when you are facing repossession for a much higher sum.
2. Don’t accept a quick sale
In desperate situations, you may be tempted to accept a below-market-value “instant cash” offer on your home. Avoid quick sale companies at all costs—they profit from your misfortune. We can provide better options.
3. Get us to help
We can help you navigate through your options. We will force your lender to give you time to make a decision that suits you. Our first step is to assess affordability for you to keep the property long-term. If this is not an option, then we will ensure you speak to regulated finance professionals or have time to sell your property on the open market.
How We’ve Helped Other Homeowners
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I cannot recommend David Harrison highly enough. He was very professional and knowledgeable throughout the whole process. From the first phone call they were an absolute super star.
Martha Ngara
October 27, 2025Very helpful advice given my term has expired but was given very good advice about my options & time frame
Ian Dunn
September 18, 2025What A Great Gentleman Richard is, absolutely Professional for the work he does. I was googling N244 at 1am in the morning as I was potentially looking at Repossession &... read more
Ajeel Safir
September 11, 2025I was in a low / dark place 18 months ago following some difficult personal circumstances. There were too many spinning plates and struggled to regain control, and faced certain... read more
Andrew Kiely
August 13, 2025 -
Richard was very easy to talk to, it was so reassuring that there are ways to help and he put my mind at rest, looking forward to taking to... read more
David Arnold
August 6, 2025What can I say about HMS,saved me from my property being repossessed on the last minute with the honest advice from Richard very much appreciated these guys are amazing.i called... read more
Gamming Channel
July 30, 2025Exceptional Support During a Difficult Time Homeowner Management Services went above and beyond when I was facing a very stressful situation with an inconsiderate lender trying to take possession of my... read more
Mjr David
July 28, 2025Ben was very understanding and helpful..I would highly recommend this company
Martin Garvey
June 5, 2025 -
Great understanding & very helpful advice on my pending repossession order. Many thanks...
Pam Benton
May 29, 2025Having problems with a possession hearing! Richard was amazing and incredibly helpful and supportive, he even took the time to offer free advice in writing to help me on the... read more
Jonny Worthy
May 28, 2025Ben was amazing and always available at any time of the day. Helped within a few days
Adam Ahmed
May 1, 2025HMS are brilliant.I have used this company a couple of times now and they cannot do enough for you.Richard,ben and david are an incredible team so much knowledge and confidence... read more
Jc S
May 1, 2025 -
I would highly recommend Richard and the term at Homeowner Management Services. They provided invaluable support and advice when I contacted them about my mortgage coming to the end of term. My... read more
Ann Mullins
April 30, 2025We had been given a repossession hearing by the bank which was scary. This would eventually lead to eviction even though we were not behind with our payments. Richard's advice... read more
Dave Wilcock
April 24, 2025Excellent, friendly, professional advice given
Stuart Kelf
April 14, 2025I spoke with Richard today. He not only put me at ease with my situation, but provided me with the next steps for me to take to get a better... read more
Jayne Forsyth
April 14, 2025 -
Excellent advice from David, very helpful, friendly and informative. Helped us with sound advice of how to deal with upcoming eviction or repossession orders. Feel a lot less burdened now. Keep up the... read more
Sam Kamal
April 2, 2025In May 2024 Landmark had started repossession due to the mortgage term expiring. I was totally expecting my house to be repossessed but then I spoke to Richard and the... read more
paula burns
March 19, 20252nd to none service from Richard and team. Swift response with excellent advice & support. Warmest regards. Lee D.
Lee Duke
February 26, 20252nd to none service from Richard and team. Swift response with excellent advice & support. Warmest regards. Lee D.
Lee Duke
February 19, 2025 -
Homeowner Management Services care! I was facing eviction from my home and Richard gave me excellent advice. He provided a legal argument to my case and when the Judge... read more
Rosemary Ebun
February 19, 2025It's been a one year and nine months since I deal with Richard and David they are amazing they keep looking after me what ever my situation but now it's... read more
Maria Cardoso
January 19, 2025the team at HMS what can i say a massive thank you to the team they not only helped me once but twice with repossession orders we owe them... read more
dale williamson
January 19, 2025Just let Richard know,I press one star thinking u pressed all stars, unfortunately it went off and put one star up and did write in my review that it... read more
Jane Hayward
November 19, 2024
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