Do you need Quick & Simple Bridging Loan?

  • Obtain Terms & Decision In Principle within 48 hrs
  • Rates from 0.55%
  • 75% LTV & up to 85% LTGDV
  • Bridge the gap between the purchase of a new property and the sale of an existing one
  • Used for a variety of purposes (property development, refurbishment, auction, chain breaks, stop repossession, business loans
  • Suitable for new buyers, home movers & remortgage
  • Tailored to suit individual needs, with flexible repayment terms
  • Available to a wide range of borrowers and can be used for both residential and commercial properties
  • Help unlock the value of existing assets and take advantage of new opportunities in the property market
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We Provide A Full Range of Professional Mortgage Services

Our bridging loan range is designed for quick and easy short term finance when fast results are important. Bridging finance can be used in variety of short-term solutions, these may include:

Property Chain Breaks _Single

Chain Breaks

Property Development with scaffolding

Auction Property

Properties in a row

Property Investor CashFlow

Stop Repossessions_Image

Stop Repossessions

Inhabitable-Properties-Fire Damage

Inhabitable Properties

Refurbishmet_Painting

Soft & Hard Refurbishment

portfolio-landlord-4 properties

Business Cashflow

Solicitors

2nd Charge Loan

Property Development with scaffolding

Property Development

Solicitors

Business Asset Finance

portfolio-landlord-4 properties

Land Purchase

Home Mover

Portfolio Landlord

How Can I Use Bridging Loan?

As specialist in the Bridging Finance niche we have great success accelerating the finance process to fit the desired goals of our clients.

New Buyers

Home Movers

Remortgage

Expert Bridging Loan Finance Advice

We work with over 100 lenders that offer bridging loans, we deliver the quickest and best results for any bridging requirements.
Contact our friendly team of experts for bridging loan support.

Why Choose Bridging Loan Finance?

  • We specialise in Bridging Loan Finance Services
  • Dedicated specialist team
  • No Job is Too Large or Small
  • We Provide High Quality and Affordable Services
  • First Time Buyers
  • Homemovers
  • Large Mortgage Loans
  • Remortgages
mortgage houses in the uk

Frequently Asked Questions (Bridging Loan Finance)

A bridging loan is a short-term loan, a temporary mortgage secured against a property, when the loan is intended for a short period, usually 3 months of weeks up to 24 months.

You will need to put down a deposit (or have equity in the property if you are refinancing) however some lenders will accept equity from other property to help reduce the cash deposit needed.

When finance is only required for a short period of time, they can provide the cheapest option for raising the funds you need. Bridging loans are quick to arrange, have flexible lending criteria so that approvals can be given quickly, and they can be secured on all types of property.

You’ll borrow the money you need to fund your purchase for 6, 12, 18 or 24 months. Due to the flexible nature of a bridging loan, lenders will charge higher interest than they would with a traditional mortgage. Therefore, borrowers will want to consider how quickly they can repay the bridging loan. You may plan to refinance or remortgage the property to clear the loan, or the property may be sold to repay the bridging finance. Alternatively you may have funds being raised elsewhere to settle the finance.

The loan is secured against the new property, so if you fail to repay the lender could repossess the property.

As a short-term loan, the interest rate on a bridge loan is usually higher than that of a standard home. This rate is monthly rather than annual and ranges from 0.39% to 1.5% per month, depending on the lender.

There are often other fees to consider, including inventory fees and exit fees if you can close the mortgage early. Still, it’s cheaper than paying off the original loan because you avoid incurring more interest.

 

Lenders often charge interest up front, deducting the expected interest from the loan amount, and if you pay the loan on time, they will refund the interest. the body. This is often referred to as retained interest. Some lenders will allow you to pay interest, so you pay the lender interest every month, although this is rarely the case.

We can get loans within hours and disbursement within days. Usually, we expect applications to be processed within 2-3 weeks, but you should be advised how long your situation will take.

 

Our lenders offer loans from £25,000 to £2 million. The amount you’re eligible for will depend on the value of the assets you already hold and your income.

You’ll usually only be able to borrow a maximum LTV (loan-to-value) of 75% of the value of the property. You may be able to leverage the equity in your property (Residential or Buy To Let) to borrow 100% of the purchase price or property value.

A bridging loan interest rate is typically higher than you’d find on a standard residential mortgage. The rate is a monthly one rather than an annual loan and range from 0.39% to 1.5% per month, depending on the lender.

There are usually additional costs to consider, including a product fee and an exit fee if you are able to close the loan facility early. Despite this, it usually works out cheaper to exit the loan earlier as you avoid accumulating more interest.

Lenders will often charge the interest upfront, effectively deducting the expected interest from the loan advance, and if you repay the debt earlier then they will refund that interest back to you. This is commonly called retained interest. Some lenders will allow you to service the interest, so you make monthly interest repayments to the lender, although this is a less common scenario.

We have been able to get bridging loans agreed in a matter of hours and funds released within days. More often we would expect an application to be competed in 2weeks however you should be advised how long your situation is likely to take.

To get bridge financing when customers need to get real estate financing faster than a standard home loan can provide. Bridging Loan can be used for several reasons, including:

To bridge the gap between selling your home and buying a new one.

Chain breaks when buying a house.

You’ve found a rare opportunity that you need to close quickly

Auction property which must be paid off within 28 days.

Having a good credit score might improve your chances of getting a bridging loan and being offered a lower interest rate. However, having adverse or bad credit does not automatically mean you won’t be able to get a bridging loan.

Bridging loans interest rates ranges between 0.45% to 1.95%, calculated on a monthly rather than an annual basis. This makes bridging loans a more expensive way to borrow money.

Bridging loan is normally secured against property, applicants with no regular income may still be able to take out a bridging loan. If you have enough spare equity in the property, then getting a bridging loan should still be an option.

It is important you conduct a bridging loan comparison to make sure you get the best deal possible to prevent you from paying over the odds. Bridging finance is more costly than a traditional mortgage due to the short-term nature of the loans, however when speed and flexibility are priority, bridging loan is a good solution.

Bridging Loan Finance offers fast bridging loan comparison with over 100 specialist bridging loan lenders, this will help you compare bridging loan costs, specifically the interest rate, the bridging lender’s product fee as well as comparing the overall cost of bridging loans.

The specialist broker will help you compare bridging lenders based on factors more than just the interest rate. For example, the best bridging loan interest rate that you’re offered may not be right for you, based on fast turnaround times.

The best product for you will always depend on your individual circumstances and a bridging finance expert will support you to make this decision. The choice may include fast track option, adverse credit, low rates, exit fees and many more.

The borrower needs to be able trust the experience of the property finance expert helping compare and arrange the bridging loan.

  • Quick to arrange.
  • It is feasible to secure substantial financial loans.
  • Flexible repayment terms.
  • Wider eligibility for lending beyond the scope of major financial institutions.
  • Available to second or third charge.

Some of the negative aspects of bridging loans include certain drawbacks that borrowers must be

Bridging loans are a type of loan where you need to provide a collateral, which makes it a secured form of borrowing. If you fail to repay the bridging loan, the asset you put up for collateral is at risk of being lost.

  • “They are not subject to FCA protection as they operate outside its regulations”
  • Higher interest rate.
  • More associated fees with bridging loans.

Bridging loan rates is higher than longer term loans such as mortgages as you are paying for the advantage of borrowing a large sum of money quickly. As bridging loans tend to be short term, their rates are usually given on a monthly basis, rather than a traditional annual percentage rate (APR). Bridging loan rates typically range from:

0.65% to 1.45% for residential bridges,

1% to 1.95% on buy-to-lets or houses in multiple occupation (HMOS).

Unlike a residential mortgage there are 3 ways that the interest on a bridging loan is charged.

Monthly – Similar to an interest-only mortgage where you pay the interest payments each month and they are not added to the loan.

Rolled up interest – Interest is simply calculated up front and added to the balance of the overall loan.

Retained interest – The borrower also borrows the interest payments due on the loan, when the finance is taken out. This money is then ‘retained’ by the borrower who uses this to cover the monthly payments. Most bridging loans are calculated this way.

The amount of time it takes to get a bridging loan approved differs from one lender to the next. It will also depend on your individual circumstances. Although it is not unusual for bridging loan providers to approve applications within 24 hours, it can take between two and four weeks for a bridging loan to get paid out once an application is approved.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE.
 
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