Bridging Loans

Bridging Loans for high speed transactions (7 to 21 days)

Bridging loans borrowers need bridging loans fast. If you need funds at speed to complete on a purchase, continue a project, or pay off a creditor. Call our team.

Large lenders such as Halifax, Barclays, and NatWest do not provide bridging loans. You need to use a specialist lender via a specialist bridging loan broker like ourselves.

Find out more about bridging loans

Competitive bridging loans are available within 7 days for:

Your bridging loan questions

What is a mortgage bridging loan?

A bridging loan is lending secured on property and designed to be offered quickly and typically repaid with 12 months.

How much does a bridging cost?

The cost of your bridging loan will vary based on the amount and type of security available, other lending in place, and your intention for the funds.

There is usually a set up fee which may be around 2% of the loan. Interest is then charged monthly at around 0.49% (6% per annum) for lower risk deals up to 1.50% for high risk/high loan to value, deals.

It is important to note that no payments need to be made on most bridging loans until the loan is repaid.

Bridging loan cost Example

A £100,000 loan held for six months with a 2% facility fee and charged at 0.59% per month will gross to £105,664 on settlement. In this example the borrower will receive £100,000 and repay £105,664 six months later.

Total cost 5.6% of borrowing.

There will also be valuation, legal, and broker costs to pay at outset

Bridging loans with bad credit history?

Bridging loans rely on having a good level of security and suitable exit plans rather than means to make payments. Therefore an applicant with bad credit history can still be considered.

Speed of bridging loans?

Bridging loans are designed to be offered quickly and a formal bridging offer is usually produced within 5 to 21 days.

Are bridging loans available expats

Yes, bridging loans for expats are available secured on UK property

What is involved in obtaining a bridging loan?

One of our Team will help you throughout the process, we need to establish:

  • How much you need to borrow
  • Why you need the funds
  • How long you need the funds for
  • What you can offer as security
  • How you intend to settle the loan (exit)

Once we have that information we can advise you on the terms available to you. When you wish to proceed we will gather the information required to submit an application.

This will include:

  • Identification and proof of income where appropriate
  • Details of intended security properties
  • Details of Solicitors to be used

When we submit your application the Lender will assess your case, run a credit score and provide an offer in principle. This will usually be completed within 6 working hours.

To proceed to formal offer the Lender needs to:

  • Arrange a valuation on your intended security
  • Confirm with any existing lenders that the property(ies) can be used as security

For higher loan to value cases a valuer will be sent out to the property. For lower loan to value cases (sub 50% LTV) valuations can often be done automatically.

As soon as satisfactory valuations are in and security confirmed, formal offer can be issued. Once you have accepted your Offer, the funds are ready for your Solicitor to access.

Common uses for Bridging Loans

Property chain breaking

Our clients were seeking to move out of London as part of their retirement plans. There were caught in a chain where their buyer’s buyer had pulled out putting both sale and purchase at risk.

We were able to raise funds allowing our Clients to purchase and giving time for their buyer to re-position themselves to complete on the original home.

Auction finance

Our client was seeking to buy a property at auction to refurbish and later let. Although he had a good deal of equity in his home he was short on cash.

We arrange lending for him to complete his auction purchase and refurbish the property. After refurbishment, the lending was rolled onto a standard buy to let mortgage product as a permanent solution.

Fast mortgage approval

Our client was seeking to buy out his brother from a property they owned jointly. His brother wanted the funds immediately. We were able to raise the lending in five working days.

Buy another house before I sell mine

Our client noticed whilst out walking that a property had become available in a highly sought after local street. She was keen to put an offer in immediately but had not yet put her current property up for sale.
We arranged funds within a week to enable her to complete her purchase .

Although the intention originally was to sell her former home, in the event it was let and we arranged a buy to let mortgage which settled the loan on her new home.

Property not suitable for mortgage

Our client saw a property for sale that he considered to be ideal as his permanent family home. Having been untouched for close to 50 years there were numerous issues with the property which meant that mainstream mortgage lenders considered it un-mortgageable. Our client, as a builder, knew what it would take to refurbish the property and wanted to do this before selling his current home.

We arranged the funds to purchase and refurbish the new property which the client later settled from his sale.

Funds needed for tax bill

Due to issues caused by her Accountant our client found herself under pressure to settle a five figure tax bill with HMRC. She was given a 14 day window to settle her account. We arrange funds within the 14 days.

Funds needed for business

Our client had been running a business for a number of years when he became aware of the retirement of a major competitor. By the time our client arrived on the scene his competitor already had a buyer lined up for his business. Following discussions our client was promised he could buy the business at a lower price provided he could access funds swiftly.

Using his home as security our client was able to raise £165,000 in a little over two weeks to complete the purchase.

Bridging Loans are short term lending products designed to:

  • Provide cash quickly
  • Bridge ‘the gap’ until permanent funds can be put in place
  • Be available regardless of issues like affordability, property condition, and credit score

To get a Bridging Loan you need:

  • Suitable security across one or more properties
  • A method of repaying the loan (exiting)

Bridging loans are ideal where:

  • You are buying at auction and need to bridge until you get permanent lending
  • You need to make a purchase but sale funds are delayed
  • A property needs refurbishment
  • A loan needed as a property is being developed
  • Expected cash funds are not yet available
  • Loan funds are needed swiftly

Our team can identify a suitable lending and get you a lending decision within 24hours

Bridging loans – FAQ’s

Can I use my property as security for bridging even if it has a mortgage on it?

Yes, bridge lending is available with other mortgages in place

Are bridging rates expensive?

No, costs have reduced considerably and rates are now available from 0.49% per month.

How much can I borrow on a bridging loan?

Bridging lending is possible to 80% loan to value and lending to 100% of your purchase price and purchase costs is possible with extra security.

Can I use any property as security for bridging?

Yes, bridging loans are available on most types of property and land.

Is bridging suitable for my property development?

Yes, bridging is available for both minor and major refurbishment and conversions.

I have a poor credit history?

No problem, adverse credit can be managed in the bridging loans market.

Is my age a problem?

No problem, there are no age limits.

I am not a UK National?

That’s fine, Foreign nationals not a problem.

I no longer live in the UK?

No problem, Expats are suitable borrowers for bridging loans.