Bridging Finance
What Can Bridging Finance Be Used For?
Bridging Loans offer a streamlined, adaptable funding alternative, ideal for seizing time-sensitive opportunities and addressing immediate financing needs.
Purchase property
Secure your next property swiftly with adaptable bridging finance, ensuring you don’t miss out on valuable opportunities.
Property refurbishment
Transform properties to their full potential promptly with immediate finance, maximising your investment’s value.
Break the property chain
Overcome transaction delays and prevent potential collapse of property chains by deploying quick, reliable funding solutions.
Access quick cash
Address urgent financial needs efficiently, utilising bridging loans as a flexible, speedy source of capital.
Refinance an asset
Streamline your asset’s financial structure effectively with bridging finance, enhancing liquidity and financial stability.
Portfolio restructuring
Reorganise your property portfolio strategically with adaptable funding, optimising your investment approach.
Purchase land without planning
Acquire promising land smoothly, even without planning permission, using bridging loans to act on opportunities swiftly.
Paying off debt
Manage and reduce outstanding debts efficiently with the help of immediate, flexible finance solutions.
Bridging Finance FAQs
Bridging loans are short-term finance solutions designed to provide fast funding. They ‘bridge’ the gap between a debt and a main line of credit becoming available. Bridging Finance relies on an exit strategy in order for the loan to be repaid, for example, selling a property or refinancing on to a buy-to-let mortgage.
Interest on Bridging Finance is charged at a monthly rate rather than an annual percentage rate (APR) because they are designed to be repaid within a few weeks or months.
We work with a variety of lenders that generally lend between £75,000 to £500,000.
The loan to value (LTV) you secure depends on the value of the security you are providing. You can typically borrow a maximum of 75% on residential property and 60% on commercial property, however, this varies from lender to lender.
As security is required, credit history and proof of income is generally unimportant to lenders and most will accept:
- Employed, self-employed or retired.
- Private individuals, partnerships or limited companies.
- Borrowers over the age of 18 years old.
- Borrowers that live or have a registered address in the United Kingdom.
- Borrowers with a form of security – usually one or more properties.
- Borrowers with a defined exit route to repay the loan.
Bridging funds can be available within a matter of days, the normal timeframe is 5 – 10 days for completion. If you require the funds fast, speak to our team who will be able to act quickly and approach the best lender.
Most types of UK property can be used as security against a bridging loan. This includes residential houses and flats, offices, warehouses and other types of commercial premises. Land with and without planning permission is also accepted.
This varies depending on the lender but – Yes, you can borrow 100% of the purchase price if you have additional property or properties to offer as security. You may also be able to borrow 100% of the purchase price if the property at significantly below its true market value.
In addition to the interest charges, there are several costs to bear in mind when obtaining Bridging Finance. These include arrangement fees, valuation fees, exit fees and solicitor fees. These will vary based on the lender and can change from time to time. Our property finance experts always aim to secure the best funds for our clients in the most cost-effective way.
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