Bridging
Loans
A bridging loan is your best option when you are looking to find a solution to quick short term finance. A bridging loan is used as a short term alternative until a longer term solution is available. They can be invaluable in securing a property purchase that otherwise would not be possible.
What is a Bridging finance?
Bridging finance is your swift, short-term financial partner, providing you with the necessary funds quickly. Its flexibility makes it ideal for situations where traditional financing might take too long or might not be suitable, such as purchasing a property before selling an existing one, taking advantage of time-sensitive investment opportunities, or when the property is not ready to be put forward as security for a long-term mortgage or sale.
It’s a versatile solution that can be used in various situations, but it’s essential to consider the costs and ensure a clear repayment plan before opting for this type of financing.
How does Bridging Finance work ?
Bridging loans provide immediate cash flow and are secured against property. They are designed to be short-term solutions and are repaid once long-term financing is secured or the property is sold. These loans are often used to quickly seize property investment opportunities or to manage temporary financial gaps.
CRITERIA HIGHLIGHTS
- Available for Residential & Commercial Properties
- Market leading rates starting from 0.65% per calendar month
- Up to 100% LTV (with additional security)
- Loans from £10,000
- Terms 1 to 18 months
- Interest can be serviced, rolled up or retained
- Staged payments
- Products with no exit fees
- Products with no arrangement fees
- Lending in England, Wales and Scotland
AREAS WE CAN HELP
- Multiple units, Retail Units, Industrial Units
- Mixed use properties, Single freehold units
- Houses in Multiple Occupation (HMO)
- Warehouses & Offices
- Care and Nursing Homes
- Restaurants and Public Houses
- Hotels and Guest Houses
Frequently Asked Question
We are happy to answer your queries on the phone or in person but here are answers to some of the most frequently asked questions we receive regarding bridging finance.
When arranged through professionals like ourselves, bridging loans can be secured and the funds available within is a very short very period time, some time it can be achieved within 72 hours of application. In cases where the financial boost is less urgent, the bridging loan will usually be arranged within a couple of weeks. Unlike traditional loans, bridging loans are often repaid quickly, although in some cases repayment could be extended to a maximum of 12 months. Bridging loan amounts typically start from around £10k.
A wide range of individuals and companies take out bridging loans on a regular basis for a myriad of reasons. Bridging loans are especially popular with landlords and property investors and developers.
The speed at which bridging loans can be secured is what makes them particularly appealing to many investors, developers, and landlords. The money secured is often raised quickly in order to finalise specific jobs, cover deposits, raise funds for an auction, or to carry out potentially unexpected refurbishments. Bridging loans are also often a good option when buyers are looking to secure funds to secure properties that may not be eligible for mortgages from a more traditional lender.
As you would expect, short-term finance is more expensive than long-term finance. Having said that, the actual rate depends on various factors like to loan to value ratio, property details and location etc.
In today’s market, current rates tend to range from 0.59% to 1.5% per month. Higher risk propositions will often incur higher interest rates.
Yes, on top of the interest rates, bridging loans will often incur lender fees, exit fees, surveyor fees (if used) and other associated legal fees.
Bridge loan providers will consider credit profiles, asset strengths, the exit strategy, and often demand that the borrower make a cash contribution upfront before funds are released.
Not necessarily. If a clear exit strategy is in place, a bridging loan should be no more risky than a traditional loan or mortgage. Borrowers could be exposed to penalties, however, if they do not meet the terms of the loan.
