Bridging Finance

We arrange short-term bridging finance for individuals and companies who need quick access to competitive, flexible funding. 

We're experts in niche, specialist, complicated financing priding ourselves on being able to get the right deal for property investors, developers and business owners.

We package your requirements in such a way that our lending panel understands and are willing to lend against. Our team offer experience-based, impartial information, accessing bridging finance from the whole of the market to ensure your rate is as low as possible for your specific circumstance. 

We consider all types of credit circumstance including adverse or bad credit and don't perform automated credit checks when you enquire so there's no footprint on your credit history.

We're able to complete within 3 days for loans below £200k, and within 14 days for loans up to £250m. 
Arrange a call with our experts today and get our best no obligation quote.


Bridging Finance Lending Criteria

Loan to value (LTV) Up to 80% maximum 
(100% with additional security)
Loan term 1 to 24 months
Loan amount £26,000 up to £250m
Interest options Rolled-up, retained or serviced
Interest rates From 0.44%
Decision Immediate decision in principle
Completion 3 days to 2 weeks
Early repayment fees None
Availability Secured on assets in UK & Europe
Individuals, Companies, SPVs
No credit & adverse credit considered
Exit strategy Sale or refinance
 

Quick Enquiry

Use the quick enquiry below to receive your
free no obligation quote for bridging finance.

What are the benefits of Bridging Finance?

Bridging finance is typically used where the borrower is asset rich but doesn't have access to cash liquidity. Here's the top 5 reasons when a bridge finance can help:

  • When you need access to funds fast
  • Where traditional banks are unwilling to lend because it isn't a standard, straight-forward loan
  • Where the loan is complex or unusual and either involves multiple assets as security or where the assets are unconventional ie. brownfield land etc
  • Where the borrower has bad or adverse credit yet is asset rich

What is meant by bridging finance?

Bridging finance is a way of bridging a gap in finding which can arise in several situations, the most of common are listed below:

  • purchasing land or property as an investment
  • investing in a business to aid cashflow, purchase property, stock or equipment
  • when purchasing via auction where there is a critical time constraint as bridge finance is typically quicker to complete than a traditional mortgage

What are the benefits of using bridging finance?

Bridging finance is typically used where the borrower is asset rich but doesn't have access to cash liquidity. Here's the top 5 reasons when a bridge finance can help:

  1. When you need access to funds fast
  2. Where traditional banks are unwilling to lend because it isn't a standard, straight-forward loan
  3. Where the loan is complex or unusual and either involves multiple assets as security or where the assets are unconventional ie. brownfield land etc
  4. Where the borrower has bad or adverse credit yet is asset rich

How much bridging finance do I need?

This is very much dependent on the type of bridging loan you want to take out as well as what your financial circumstances are. There's no 'one-size fits all' when it comes to bridging loans so its important your lender completely understands your requirements and circumstances in order to offer the best rate and the best terms possible.

How long does it take to get bridging finance?

This will vary on an individual bridging finance lender basis however, typically bridged loans are very quick to complete. If you have already found a property for example and need money quickly bridged loans can be great in this situation because they don't require solicitors letters etc which regular mortgages do. What is bridging loan with example?

Interest rates for bridging finance

Interest rates for bridge finance varies greatly depending on various factors such as:

  • the lenders appetite for the loan risk
  • the quality, condition and value of the asset against which the loan's secured
  • the credit history of the borrower (although this isn't necessarily an issue where the security is has a lower LTV (Loan to value).

Typically rates are between 0.50% to 2.00% per month.

Bridging finance fees

Typically bridging finance fees are between 1-4% of the loan value depending on your specific circumstances, but can vary significantly depending on the lender, security offered or loan use.

Is bridging finance a good idea?

There are various reasons why bridging finance might not be the best option for you; especially where it is expensive or particularly high risk. Some of these include:

Whilst we've seen a buoyant housing market since the financial crash of 2008, the housing market is by no means a certainty and if property prices reduce, then bridging finance may value your current property lower than it otherwise would have been worth, meaning that bridging finance could represent locking money up in an asset which will diminish in value. If interest rates were to rise between now and selling the property or refinancing then bridging finance can become risky.

You must ensure that you are completely satisfied that you understand the loan product you intend to use and if in doubt then you should seek independent financial advise from an independent financial advisor. 

What is bridge financing with example?

One in five bridging finance transactions in the UK are for property or land acquisitions. It typically takes two weeks to complete a bridging loan from initial enquiry to draw down, but can be as little as 3 days for loans under £200k or longer if the deal is complex.

Bridge financing is typically repaid in one lump sum at the end of the term with no monthly interest payments. If a borrower did wish to pay the interest monthly this would be called 'serviced interest'. A common reason why borrowers opt for the lump sum repayment option is simply that the reason why they require the loan in the first place is that they don't have access to cash and so are less likely to be able to make interim payments.

I want to explore my options with Bridging Finance - what should I do?

Once you have identified bridging financing as being a possible choice, it's time to speak with a specialist who can advise on how much you can borrow and give you an accurate understanding of the process and costs associated. 

Helpful Tip - As soon as you think you'll require a bridge loan contact a broker - try not to leave it to the last minute as this will reduce the number of lenders the loan could be offered to which ultimately will reduce their competitiveness. Arrange a call here.

Do you need proof of income for a bridging loan?

Not necessarily as bridging finance lenders secure the loan against property. Even though they may not require proof of income to underwrite the loan, it's likely they will request proof of income from the borrowers as this forms part of their due diligence process.

What documents do I need to provide when taking out bridging loans?

You should always check what each lender requires but typically borrowers will require:

  1. Proof of identity and address, such as a utility bill, current UK driving license or HMRC Tax document.
  2. Application form, which is arguably the largest document out of all of the above. The application form will detail information such as the borrowers name, address, residential status, NI number, employment status, dependents, loan details, purpose of borrowings, repayment proposal, security details, any outstanding mortgages, solicitors details, credit history, company information if borrowing via a company and accountant contact details.
  3. Statement of assets and liabilities, which lists all the borrowers monthly fixed costs and incomes.

Other documents that may be required are:

  1. Mortgage content form where there's an existing 1st charge mortgage in place on the security.
  2. Schedule of works, where the loan relates to a building project and will details the timeframe for completing the work and the cost of each phase.

Why do bridging finance lenders ask for first charge? (Also known as a first legal charge)

A first legal charge gives bridging finance lenders priority over other creditors should their borrowers default, become insolvent or as a company, go into liquidation. Bridging finance can be a 1st, 2nd or 3rd charge.

Can you get 100% bridging finance?

Yes, but in order to do so in most cases you'd need to put up additional property as security. You should always check to see what bridging's return on investment is likely to be for you, and if this does not work out as a gain, then bridging finance might not be appropriate.

Bridge finance examples

This type of loan can be used when you need to buy a new property before selling your old one. This can happen in situations such as:

1) If you are moving house and need somewhere to live in the interim period between when you buy and when you sell; or

2) when renovations, refurbishments or other work needs to be carried out on your home and you do not want to move into it until this has been completed and then sell up afterwards.

Bridge finance allows people who find themselves in this position either borrow against a residential property (typically 70% - 80% of its value, although if you have additional property to use a security you can get up to 100% of your funding requirements).

Some of our lending partners

Acre Lane Capital
Broadoak Private Finance
Funding 365
Oakbridge
Agility Bridging
Apex Bridging
Hope Capital
Interbridge
Mintbridging
Together
Barton
Bath & West
The Bridging Group
Focused Lending
Lendinvest
MFS
Octane Capital
Proplend
Bridgecrowd
Tuscan Capital
West One
Whitehall Capital
Zorin Finance
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