Large Bridging Loans

Large Bridging Loans

Large bridging loans are short-term finance providing a minimum loan size of £1,000,000 up to a value of £250,000,000 for bigger projects and opportunities. 

Large commercial investments, prime luxury property purchases, water-side real estate, private islands, and property portfolio financing are typical examples of large bridging finance suited to high and ultra-high-net-worth investors and companies.

Secured on single or multiple property assets, large loans can be completed in 2-12 weeks, depending on the complexity of security and borrowing structure.

We're experts in the complicated and package your requirements in such a way that our lending panel understands and will want to lend against. 

Our Large Bridging Loan service

  • Market-leading property bridging loans from £1 million to £250 million
  • Monthly interest rates from 0.44% pm
    (Lower rates for £700,000+ loans or less than 50% LTV)
  • LTVs up to 75% (up to 100% finance if additional collateral is available)
  • No monthly payments with interest rolled-up options 
  • Terms up to 24 months

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Large Bridging Loan Lending Criteria

Loan to value (LTV) Up to 80% maximum 
Loan term 1 to 24 months
Loan amount £1m up to £250m
Interest options Rolled-up, retained or serviced
Interest rates From 0.44%
Decision Immediate decision in principle
Completion Up to £250m from 2-12 weeks
Early repayment fees None
Availability Secured on assets in the UK & Europe
Individuals, Companies, SPVs
No credit & adverse credit considered
Exit strategy Sale or refinance

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

2024 Large Bridging Loan Guide

Large bridging finance offers a vital solution for those needing quick, substantial funds to bridge gaps in financing until permanent arrangements are made or assets are sold. These loans are ideal for significant transactions like commercial property acquisitions, extensive developments, or urgent investments. They are valued for their rapid accessibility and flexibility, catering to various purposes, from large-scale property purchases to business expansions. With potential loan amounts ranging significantly based on various factors, including the value of collateral and the borrower's financial standing, large bridging finance is a powerful tool for investors, developers, and businesses navigating high-value transactions and time-sensitive opportunities.

What is large bridging finance?

Large bridging finance refers to substantial, short-term loans designed to bridge the funding gap until permanent financing is secured or an asset is sold. It's typically used for significant transactions, such as commercial property acquisitions, large-scale developments, or time-sensitive investments, offering fast access to capital with the expectation of a clear exit strategy for repayment.


How much can I borrow?

The amount you can borrow with large bridging finance varies widely depending on several factors, including the lender's criteria, the value of the property or assets being used as collateral, the strength of your exit strategy, and your financial standing. Generally, loans can range from a few hundred thousand to tens of millions of pounds, with the loan-to-value (LTV) ratio often capped at around 70% to 75% of the property's value, though some lenders may offer more under certain conditions. It's important to consult with lenders or financial advisors to get an accurate figure based on your specific circumstances.


What can I use high-value bridging finance for?

High-value bridging finance can be used for a broad range of purposes, especially where large sums of money are needed quickly and for a short duration. Common uses include:

  • Large-scale property purchases 
    Quick funding is needed to buy residential, commercial, or industrial properties, especially in competitive markets.
  • Development Finance 
    Financing for building construction, renovation, or conversion facilitates project commencement and progress.
  • Land acquisition 
    Purchasing land for development or investment purposes.
  • Auction purchases
    Providing the necessary funds to complete transactions within the tight deadlines imposed by property auctions.
  • Business expansion
    Offering capital for businesses looking to grow through acquisition, capital expenditure, or operational scaling.
  • Bridging cash flow gaps
    Addressing temporary liquidity shortfalls in businesses or investment portfolios.
  • Debt restructuring
    Consolidating existing debts or refinancing to more favourable terms before securing long-term financing solutions.
  • Tax liabilities
    Covering urgent tax payments or other unforeseen financial obligations to avoid penalties.
  • Buying out partners
    Facilitating the quick buyout of business partners or shareholders in a company.
  • Portfolio acquisition
    Enabling investors to purchase multiple properties or assets, expanding their portfolio efficiently.

High-value bridging loans are particularly valued for their speed and flexibility, allowing borrowers to swiftly seize opportunities or resolve financial challenges.


What types of property can I purchase?

With high-value bridging finance, you can purchase a wide range of property types, including:

  • High-value Residential Properties. From luxury properties and waterfront properties to large apartment complexes and private islands.
  • High-value Commercial Properties. Including large office buildings, retail spaces, warehouses, and industrial units.
  • Semi-commercial Properties. Buildings that combine residential, commercial, or retail spaces.
  • Land. Both with and without planning permission, for development or investment purposes.
  • Auction Properties. Properties bought at auction often require quick payment completions.
  • Development Sites. For new construction projects or major renovations of existing structures.
  • Luxury Properties. High-end residential or commercial properties.
  • Portfolio Acquisitions. Purchasing multiple properties at once for investment purposes.
  • Special Purpose Properties. Hotels, care homes, and student accommodations.

Bridging finance is versatile and can be tailored to suit a variety of investment strategies and property transactions, offering flexibility and speed not always available with traditional financing methods.


Advantages of a large bridging loan


Large bridging loans offer several advantages, particularly for borrowers needing quick, short-term financing for substantial amounts. Key benefits include:

Speed of Access. Bridging loans can be arranged much faster than traditional bank loans, often within days, allowing borrowers to capitalize on time-sensitive opportunities.

Flexibility. Terms can be more flexible than traditional loans, with lenders often willing to consider a wider range of collateral and bespoke repayment structures.

No Early Repayment Charges. Many bridging loans do not have early repayment penalties, enabling borrowers to repay the loan as soon as their longer-term financing is secured or their property is sold.

Leverage High-Value Transactions. They provide the capital for high-value property transactions, developments, or investments that might not be immediately fundable through other means.

Gap Financing. They serve as an interim solution for funding gaps, such as completing property purchases before selling an existing property or securing long-term financing.

Non-Status Lending. Financing decisions are often based more on the asset and the exit strategy than on the borrower's credit history, making it suitable for borrowers with complex financial situations.

Potential for Interest Roll-Up. Some lenders may offer the option to roll up interest to pay at the end of the term, easing cash flow pressure during the loan period.

Diverse Use Cases. Can be used for a wide range of purposes, from real estate investments and developments to business cash flow solutions and debt consolidation.

These advantages make large bridging loans a powerful tool for investors, developers, and business owners facing unique financing challenges or seeking to take advantage of immediate opportunities in the market.


Can I get a large loan with an adverse credit history?

Securing a large loan with an adverse credit history is possible, especially in bridging finance. Bridging loans are typically secured against property or assets, meaning the lender focuses more on the collateral's value and the exit strategy's viability than the borrower's credit history. Here are key points to consider:

Asset-Based Lending. Since bridging loans are secured against the value of your property or assets, lenders may be less concerned with your credit history and more interested in the collateral's value and the loan's exit plan.

Higher Interest Rates. Borrowers with adverse credit histories may face higher interest rates as lenders perceive greater risk in lending to individuals with a less favourable credit background.

Exit Strategy. Lenders will closely evaluate your exit strategy, which is how you plan to repay the loan, such as selling the property or refinancing. A solid and credible exit strategy can significantly enhance your chances of approval.

Loan to Value (LTV). Your credit history may affect the amount you can borrow, and lenders may offer a lower LTV ratio to mitigate risk.

Specialist Lenders. Some lenders specialize in lending to individuals with adverse credit histories and may offer more tailored solutions for your situation.

Despite an adverse credit history, the key to securing a large loan is often using the property's value as security and having a clear, achievable exit strategy to ensure the loan can be repaid.


Can I use a large loan for auction property?

Yes, you can use a large loan, such as a bridging loan, for purchasing auction properties. Bridging loans are particularly well-suited for auction purchases due to their quick arrangement times and short-term nature. Here's why they are a good fit:

Speed. Auction purchases require quick payment, often within 28 days after the auction. Bridging loans can be arranged rapidly to meet these tight deadlines.

Flexibility. Bridging loans offer the flexibility needed for the varied types of properties sold at auction, including those that may not qualify for traditional mortgages due to condition or type.

Short-term Solution. Since bridging loans are designed for short-term use, they are ideal for auction buyers planning to renovate and sell the property or refinance to a long-term mortgage solution.

Funding Amount. Large bridging loans can cover substantial purchase amounts, making them suitable for higher-value auction properties.

Ease of Access. The approval process for a bridging loan is typically quicker and less stringent regarding the borrower's credit history, as the loan is secured against the property.

Using a bridging loan for auction property purchases allows buyers to act swiftly and secure properties that they might otherwise miss out on due to the need for immediate funding. However, it's important to have a clear exit strategy for repaying the bridging loan, such as selling the property or obtaining a long-term mortgage.


Who is eligible?

Eligibility for a large loan, especially in the context of bridging finance for auction property purchases, generally depends on several factors:

Security. The primary criterion is the availability of suitable security, typically in the form of real estate or other valuable assets that can be used as collateral against the loan.

Exit Strategy. Lenders require a clear and credible exit strategy, which is how the borrower plans to repay the loan. This could be selling the property, refinancing to a more traditional mortgage, or securing funds.

Loan to Value (LTV). The loan amount is compared to the value of the property or asset. Most lenders have specific LTV ratios they are willing to offer, which can be influenced by the borrower's financial situation.

Financial Standing. While bridging loans are more focused on the value of the collateral and the exit strategy, lenders may still assess the borrower's financial standing, including income, assets, and credit history, to gauge the risk of the loan. However, some lenders specialize in lending to individuals with adverse credit histories.

Property Type. The type of property or asset being purchased can affect eligibility. Lenders may have preferences or restrictions on the kinds of properties they are willing to finance, such as residential, commercial, or land.

Borrower Type. Individuals, companies, partnerships, and sometimes trusts can be eligible for large bridging loans, provided they offer suitable security and meet the lender's criteria.

Legal and Regulatory Requirements. Borrowers must meet certain legal and regulatory requirements, varying by jurisdiction, including proof of identity, address, and compliance with anti-money laundering regulations.

Lenders of large bridging loans typically offer flexibility in their criteria compared to traditional financing options, focusing on the security offered and the feasibility of the exit strategy. Potential borrowers should consult a financial advisor or broker to understand specific eligibility requirements and find the best financing solution.


How long does it take to arrange large bridging finance?


The time to arrange large bridging finance can vary depending on the deal's complexity, the amount of due diligence required, and the parties' efficiency. However, one of the key advantages of bridging loans is their speed compared to traditional financing options.

Typically, arranging a bridging loan can take a few days to a few weeks. Here's a rough breakdown:

Initial Inquiry and Application. A few days to gather the necessary documents and apply to the lender.

Valuation and Due Diligence. Once the application is submitted, the lender will conduct a valuation of the property or asset used as collateral and perform the necessary due diligence. This process can take a few days to over a week, depending on the property type and the complexity of the valuation.

Approval and Offer. The lender will issue a formal offer if the valuation is satisfactory and the due diligence does not raise significant issues. This step can be relatively quick, occurring within a few days of the valuation being completed.

Legal Work. After the offer is accepted, legal documents need to be prepared and signed. The speed of this process largely depends on the efficiency of the legal teams involved, but it typically takes about a week.

Funding. The funds can be released once all legal documentation is in place and loan conditions have been met. This final step can often be completed within a few days.

The process from application to funding for a large bridging loan can range from as little as one week for the most straightforward and urgent cases to up to a month for more complex situations. Borrowers must work closely with their lenders, valuers, and legal teams to ensure the process moves quickly, especially if the funds are needed for time-sensitive opportunities such as auction purchases.


Does high-value bridging finance have higher interest rates?

No, high-value bridging finance typically comes with lower interest rates than standard bridging loans. However, when compared to traditional long-term financing options like mortgages. The reasons for these higher rates include:

Short-Term Nature Bridging loans are short-term loans, usually lasting from a few months to two years. Bridging loan lenders charge higher interest rates to make these loans profitable within a shorter timeframe.

Risk. Lenders often see Bridging loans as riskier, especially when the borrower has an adverse credit history or the loan is for a non-standard investment, such as property development or auction purchases. Higher interest rates compensate for the higher risk.

Speed and Flexibility. The ability to secure funding quickly and with flexible lending criteria is highly valued, especially for time-sensitive investments. Lenders charge a premium for this convenience and flexibility.

No Early Repayment Charges. Many bridging loans do not have early repayment penalties, which means lenders may charge higher interest rates to ensure they still make a profit even if the loan is repaid sooner than expected.

Bespoke Financing. Bridging loans are often tailored to the borrower's needs, requiring more work from the lender in assessment, valuation, and risk management. This bespoke service can lead to higher costs, reflected in the interest rates.

Interest rates for high-value bridging finance can vary significantly based on the lender, the amount borrowed, the loan-to-value ratio, the exit strategy, and the overall risk assessment of the loan. Borrowers need to shop around and negotiate the best terms possible and have a clear and viable exit strategy to repay the loan promptly, minimizing the interest cost.


Are there any additional fees?

In addition to higher interest rates, high-value bridging finance typically involves several additional fees that borrowers should be aware of. These can include:

Arrangement Fees. Lenders charge these, also known as facility or commitment fees, for setting up the loan. They usually range from 1% to 2% of the loan amount but can vary based on the loan's size and complexity.

Legal Fees. The borrower may need to cover both the lender's and borrower's legal fees. These fees pay for the legal work involved in drafting and reviewing the loan agreement and securing the charge over the property.

Valuation Fees. Paid to a surveyor to assess the property's value or asset being used as security. The cost can vary significantly depending on the property type and value.

Exit Fees. Some lenders charge an exit fee when the loan is repaid. This fee can be a fixed or a percentage of the loan amount. However, not all lenders charge exit fees, so it is important to check the terms carefully.

Administration Fees. For handling paperwork and other administrative tasks related to the loan. These fees are generally lower than arrangement fees but can add up.

Broker Fees. If you use a broker to find and arrange your bridging finance, they may charge a fee for their services, typically a percentage of the loan amount.

Early Repayment Charges. Although less common in bridging finance, some lenders may charge a fee if the loan is repaid before a certain period.

Non-utilisation Fees. If the borrower does not draw down a portion of the loan within a specified period, the lender may charge a fee on the undrawn amount.

Understanding all potential fees associated with high-value bridging finance is crucial for accurately calculating the total cost of the loan. Borrowers should review the loan agreement carefully and discuss all fees with the lender or broker to avoid surprises.


What is the difference between large and other bridging finance?

The primary difference between large bridging finance and other bridging loans lies in the scale of the funding and the complexity of the transactions they are designed to support. Here are some key distinctions:

Loan Amount. Large bridging finance involves significantly higher loan amounts, often millions, to cater to substantial property purchases, developments, or business transactions. In contrast, standard bridging loans may cater to smaller-scale financial needs.

Collateral Required. Given the higher loan amounts, large bridging loans may require more substantial or multiple assets as collateral. The nature and valuation of these assets can introduce greater complexity into the loan arrangement process.

Interest Rates and Fees. The interest rates and fees for large bridging loans might be negotiated case-by-case, reflecting larger transactions' unique risks and complexities. Although bridging finance generally carries higher interest rates than traditional long-term loans, the specific terms for large loans can vary widely depending on the borrower's situation and the lender's assessment of the deal.

Due Diligence and Underwriting. The process for approving large bridging loans can be more involved, with lenders conducting extensive due diligence to assess the viability of the proposed exit strategy, the value of the collateral, and the borrower's financial standing. This scrutiny is necessary due to the higher stakes involved.

Flexibility and Customisation. Large bridging finance often offers greater flexibility and customization to meet the specific needs of complex transactions. Lenders may work closely with borrowers to tailor terms, repayment schedules, and loan structures to align with the project's requirements or the borrower's cash flow.

Exit Strategy Importance. While a credible exit strategy is crucial for all bridging loans, its significance is magnified in large bridging finance due to the higher amounts involved. Lenders need assurance that the loan can be repaid through asset sale, refinancing, or other means.

Market Access. Accessing large bridging finance may require dealing with specialized lenders or private financing sources that operate beyond the mainstream lending market, capable of providing the substantial sums required but potentially at higher interest rates or more stringent terms.

In summary, large bridging finance is tailored to support more significant, often more complex transactions with correspondingly higher loan amounts, requiring detailed risk assessment and bespoke loan terms to accommodate the unique needs and risks associated with such deals.


What information do you need to process large bridging funds?

To process large bridging funds, lenders typically require detailed information to assess the loan's viability, the collateral's value, and the borrower's ability to repay the loan. Here’s a comprehensive list of the information and documentation commonly requested:

Loan Application. A completed application form detailing personal information, financial status, and the specifics of the loan request.

Identification Documents. Proof of identity and address for all individuals involved, typically requiring government-issued identification and recent utility bills or bank statements.

Details of the Property or Asset. Comprehensive information on the property or asset being used as collateral, including address, type, current use, and legal status. This would include tenure (freehold or leasehold) and any planning permissions for real estate.

Valuation Report. A professional valuation of the property or asset to determine its market value and the loan-to-value (LTV) ratio.

Proof of Ownership. Documents verifying the applicant's ownership of the collateral.

Exit Strategy. A clear and plausible plan for repaying the loan, such as selling the property, refinancing, or another concrete financial arrangement.

Financial Statements. For both individuals and businesses, recent financial statements, including income statements, balance sheets, and bank statements, to assess financial health and cash flow.

Credit History. Details of the borrower's credit history, although the emphasis on this can vary depending on the lender, the strength of the collateral, and the exit strategy.

Business Plan or Project Plan. For loans related to business expansion or property development, a detailed plan outlining the project's scope, timeline, budget, and expected returns.

Legal Documentation. Any relevant legal documents, such as planning permissions for development projects, lease agreements for investment properties, or corporate documents for business entities.

Insurance Information. Evidence of appropriate insurance coverage for the property or asset being used as collateral.

Cost Estimate. For development or renovation projects, a detailed breakdown of the projected costs.

Sales and Marketing Strategy. For projects involving selling property or developed assets, a strategy for marketing and achieving the projected sales.

Lenders use this information to conduct due diligence, assess risks, and determine the loan terms. The specific requirements can vary by lender and the nature of the loan, so it's advisable to consult directly with the lender or a financial advisor to ensure all necessary documentation is prepared and submitted to facilitate the loan processing.


How do I apply for a large bridging loan?

Applying for large bridging finance typically involves a multi-step process that requires careful preparation and documentation. Here's a general outline of how you can apply for a large bridging loan:

Research Lenders. Start by identifying lenders that specialize in large bridging finance. These can include banks, specialist bridging finance companies, and private lenders. Look for lenders with a strong track record in your specific area of need, whether real estate, development, or business financing.

Prepare Your Documentation. Gather all necessary documentation based on the list provided in the previous message. This includes personal identification, details and valuation of the property or asset, financial statements, a clear exit strategy, and other documents supporting your application.

Consult a Financial Advisor or Broker. Considering the complexity and significance of large bridging loans, consulting with a financial advisor or a broker might be beneficial. They can provide valuable advice, help you prepare your application, and connect you with suitable lenders.

Submit a Preliminary Inquiry. Many lenders offer the option to submit a preliminary inquiry online or over the phone to discuss your financing needs and get an initial assessment of your case. This step can help you understand the lender’s interest in your application and any specific requirements they may have.

Complete the Application Form. Fill out the lender's application form thoroughly. This form will ask for detailed information about you, your financial situation, the collateral you offer, and how you plan to repay the loan.

Provide Required Documentation. Submit all the required documentation along with your application form. Ensure all documents are current and accurate and clearly depict your financial situation and the proposed security.

Undergo Valuation and Due Diligence. The lender will conduct a collateral valuation and perform due diligence based on your provided information and documents. Be prepared to facilitate access to your property or additional information as required.

Review and Negotiate the Offer. If your application is successful, the lender will make an offer detailing the loan amount, interest rate, fees, and terms. Review this offer carefully, possibly with the help of your advisor or broker, and negotiate any terms if necessary.

Legal Process. Once you accept the offer, you must secure the loan against the property or asset, involving both your legal representation and the lender's. Ensure you understand all legal implications and obligations.

Funding. The loan will be funded after all legal documentation is completed and any conditions are met. The time frame for receiving funds can vary, but it is typically quick with bridging finance, especially if all preparations are in order.

Remember, each lender may have a slightly different process, so it’s important to follow any specific instructions they provide. Also, ensure you have a solid exit strategy for repaying the loan, as this is critical to securing bridging finance.


Are large bridging loans FCA regulated?

In the UK, whether a bridging loan is regulated by the Financial Conduct Authority (FCA) depends on the purpose of the loan and the type of property it is secured against. Here's a breakdown of how this works:

Regulated Bridging Loans

These are bridging loans secured against property the borrower or a family member lives in or intends to live in. Regulated bridging loans are subject to FCA oversight, meaning lenders must adhere to strict lending criteria and conduct rules to protect consumers. This includes providing clear information about the loan, ensuring it suits the borrower’s needs, and assessing the borrower's ability to repay it.

Unregulated Bridging Loans

Loans secured against investment properties, commercial properties, or land not intended for personal use by the borrower or a family member are typically unregulated. They do not fall under the FCA's strict consumer protection regulations. Many large bridging loans fall into this category, especially those used for property development, buying commercial properties, or other investment purposes.

The distinction between regulated and unregulated bridging finance is crucial because it affects the level of consumer protection you can expect and the lender's obligations. Even when a bridging loan is unregulated, reputable lenders will still conduct thorough due diligence and adhere to good practice standards. However, the regulatory framework and recourse in disputes or issues differ from regulated loans.

For borrowers, it's essential to understand whether your bridging loan is regulated or unregulated and to consider the implications for your rights and protections under the law. If in doubt, seek advice from a financial advisor or legal expert familiar with property and finance regulations in the UK.


Exit strategies for large bridging loans

An acceptable exit strategy is crucial to securing a bridging loan, as it outlines how the borrower intends to repay the loan at the end of the term. Lenders must be confident in the borrower's ability to execute this strategy successfully. Here are some commonly accepted exit strategies for bridging loans:

Sale of Property. One of the most common exit strategies is where the borrower plans to sell the property being financed or another property in their portfolio. This is often used for properties bought at auction, renovation projects, or downsizing or upgrading homes.

Refinancing. Borrowers may plan to refinance the bridging loan with a more traditional, long-term financing solution once certain conditions are met, such as improved credit score, increased property value, or income stabilisation. This is a common strategy for buy-to-let investors or those undertaking property development.

Sale of Another Asset. Like selling the property, it involves selling a different significant asset to repay the loan. This could include business assets, investment portfolios, or valuable personal assets.

Inheritance or Trust Funds. Receiving funds from an inheritance, trust, or similar financial windfall can be an exit strategy, provided the timing and amount align with the loan repayment schedule.

Business Revenue. For loans taken out to support business operations or expansion, the revenue generated from the business's growth or specific projects can be used to repay the loan.

Legal Settlements. Anticipated proceeds from legal settlements or awards can be considered an exit strategy if the timing and amount are certain.

Other Investments. Liquidating other investments, such as stocks, bonds, or ownership stakes in businesses, can provide the funds needed to repay the loan.

When proposing an exit strategy, it's important to provide the lender with clear, credible evidence that the strategy is viable. This might include marketing materials for the property sale, pre-approval letters for refinancing, contracts or letters indicating the sale of assets, or documents confirming the inheritance or legal settlement.

Lenders will assess the risk associated with the exit strategy, considering factors like market conditions, the borrower's track record, and the timeline for the proposed repayment. A well-thought-out and documented exit strategy increases the likelihood of loan approval and can lead to more favourable terms.


Process to pay back the loan

Repaying a bridging loan follows a specific process, typically aligned with the exit strategy you have outlined at the outset of the loan agreement. Here is a general overview of the steps involved in repaying a bridging loan:

Review Loan Agreement. Review your loan agreement to understand the repayment terms, including the due date, interest charges, and fees. Familiarize yourself with the conditions to ensure compliance and avoid any penalties.

Monitor Your Exit Strategy. Since bridging loans are short-term, keeping a close eye on your exit strategy—selling a property, refinancing, or another method—is crucial. Ensure that your plan is progressing as expected to meet the repayment deadline.

Communicate with Your Lender. Keep open lines of communication with your lender, especially if you anticipate any delays or changes in your exit strategy. If refinancing is your exit strategy, start the application process well to ensure you have the new financing before the bridging loan is due.

Prepare the Funds. As the repayment date approaches, ensure the funds are available to repay the loan fully, including any interest and fees. If your exit strategy involves selling a property or another asset, confirm that the sale will close in time to access the repayment funds.

Notify the Lender. Once the funds are available, notify your lender of your intention to repay the loan. They will provide instructions on making the payment, which could include a bank transfer or another method specified in your agreement.

Repayment and Discharge. Follow the lender's instructions to make the repayment. Once the loan is repaid in full, the lender will discharge any security held against the loan, such as a charge over a property. Ensure you receive confirmation of the loan's discharge in writing.

Closing Documentation. Request or provide any necessary closing documentation, including a final statement confirming that the loan balance is paid in full and the security interest is released.

Refinancing. If refinancing is your exit strategy, ensure the new large refinance facility is approved, and the funds are directly used to repay the bridging loan. The process will involve your new and bridging loan lender to ensure a smooth transition.

It's important to plan and manage your exit strategy effectively to ensure you can repay the bridging loan on time. Delays in repayment can lead to additional costs, such as extended interest charges or penalty fees, so proactive management and communication with your lender are key to a successful repayment process.


Is a large bridging loan right for you?

Large bridging finance is critical for securing swift and substantial funding necessary for bridging financial gaps until more permanent solutions are established or assets are liquidated. Tailored for significant undertakings such as commercial acquisitions, expansive developments, or urgent capital injections, these loans stand out for their rapid availability and adaptable terms, facilitating various financial needs from major property purchases to strategic business expansions. Despite the potential for higher interest rates and additional fees, the flexibility, speed, and capability to accommodate large-scale transactions make large bridging loans invaluable for investors, developers, and businesses facing high-value, time-sensitive opportunities. With the possibility of catering to those with adverse credit histories and the ability to use these loans for auction property purchases, large bridging finance represents a versatile and potent tool in the arsenal of modern finance strategies, emphasizing the importance of a solid exit strategy for repayment success.


 

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What are the costs associated with applying for large bridging loans?

Typical costs associated with applying for a large bridging loan are:

  • arrangement fees - the fees you pay for having the lending facility
  • broker fees - the fees you pay for the help of the broker arranging your loan
  • valuation fees - the valuation fee pays for the valuation report prepared by the lender's surveyor to assign a value to the security you're offering for the loan
  • legal fees - to cover the cost of drawing up the legal agreement covering the lending facility and the costs associated with registering a charge on the property/ies you offer as security
  • exit fees - this pays for your lender to remove the charge from your property/ies when you pay back the loan. Some lenders may charge up to 2% of the value of your loan as an exit fee however this is now much less prevalent than before.

Are large bridging loans regulated by the Financial Conduct Authority?

Large bridging loans secured on primary residential properties are subject to Financial Conduct Authority oversight. Your primary residential property is the property you're registered as living in.

Can you get a large bridging loan on mortgage free properties?

Yes.

If you offer property or properties with no mortgage or other debt secured on them, your bridging lender will seek a first charge on them which they remove when you repay the loan.

Do you have to get permission from your existing lender to secure a large bridging loan against your property?

Yes. If you apply for a bridging loan on property where the mortgage has not yet run to full term, your bridging loan provider will need to approach your existing lender.

They will seek permission to secure the bridging loan with a second or third charge on your property.

For each property you provide as security, your bridging loan provider must gain approval from the existing lender or lenders.

Does it take longer to be approved for a large bridging loan than a traditional mortgage?

Traditional mortgages take much longer to arrange than a large bridging loan.

If you need to raise money quickly, it's quicker to apply large bridging loan.

With a standard jumbo mortgage, the lead time between application and drawdown of funds can be up to three months.

With a large bridging loan, the lead time is as little as three weeks.

Do large bridging loans have a fixed repayment date?

There are two types of bridging loan you can apply for - open or closed.

A closed bridging loan has a fixed repayment date on which you guarantee to your lender that they'll be paid back in full.

An open bridging loan allows you to repay the facility back in full at any point within the following 2 years.

Your lender stops charging interest to you on the day you make your repayment (although the minimum term for a bridging loan is one month meaning that you'll pay at least one month's interest).

How do you pay a large bridging loan back?

You pay back a bridging loan in a completely different way to mortgages and other debt secured on property.

There are no monthly repayments on a large bridging loan (unless you request this option).

With most large bridging loans, you repay the loan amount back (capital and interest) in full in one tranche.

The large bridging loans we offer have a minimum term of 1 month and a maximum term of 24 months.

Can you use large bridging loans to buy property at auction?

Yes. If you want to a large bridging loan to use auction finance on a property purchase, we can help.

It takes slightly longer to get approval from a bridging lender on a request for £1m or more so please get in touch with us as soon as possible.

This will give our team enough time to secure a deal for you.

Are interest rates on larger bridging loans competitive?

The interest rates offered by lenders on larger bridging loans are more expensive than the interest rates you'd pay on a standard jumbo mortgage.

But it's also important to factor into your decision:

  • early repayment fees and
  • amortisation.

With most bridging loans, there are no early repayment fees. Borrowers are often penalised by mortgage providers if they pay their mortgage off in full or switch to another provider with the lock-in period.

In some cases, the early repayment fees you'll have to pay may cancel out the savings you would have made by choosing a mortgage.

In addition, mortgages are amortised meaning that, during your lock-in period, you're actually paying down interest more than you're paying down the capital (the amount you borrowed). This means that your mortgage balance may not be reducing as quickly as you hoped.

You can choose either a variable rate or a fixed rate of interest on your bridging loan. For more information, please arrange a call with our experts today and get our best no obligation quote.

What is a large bridging loan?

Large bridging loans tend to classified by lenders as funding proposals where the loan amount requested is for £1m or more.

We can manage your application so that you receive funding in as little as three weeks after you've applied to us.

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