Residential Bridging Loans
We arrange UK residential bridging loans as a short-term finance solution for individuals and companies who need to access funds secured against residential properties.
Whether you're looking to finance a property bought at auction, use the bridging loan for property refurbishment, funding a property conversion, extend or develop a property, fix a broken property chain, purchase of BTL (Buy to let) property, rebridge an existing loan or just require the loan for cash-flow, all cases are considered and we're ready to help.
We offer experience-based, impartial information, accessing quotes from UK residential bridge loan lenders to ensure your rates are as low as possible for your specific circumstance.
Our Residential Bridging Loan service
- Market-leading property bridging loans from £26,000 to £250m
- Monthly interest rates from 0.44% pm
(Lower rates for £700,000+ loans or less than 50% LTV) - LTVs up to 80% (up to 100% finance if additional collateral is available)
- Automated valuation options and dual legal representation
- No monthly payments with interest rolled-up options
- Terms up to 24 months
Residential bridging loans are available on property in England, Scotland, Wales, Northern Ireland & Europe.
We provide a fast reliable service to help you get the residential bridging finance you need at the best available rates.
We consider all types of credit history including non-status, bad or adverse and don't perform automated credit checks so there's no footprint from enquiring.
With incredible relationships with the UK's top lenders including specialist property lenders, family offices and private investors, we can source the bridging loan you require:
up to £300k loans in 3 days
up to £700k loans in 7 days
up to £250m from 14 days
Where your timeline is critical and short, we're confident we can get your bridging loan in place. Get your best no obligation quote today.
Residential Bridging Loan Lending Criteria
| Loan to value (LTV) | Up to 80% maximum |
| 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 | Instant 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 |
A complete guide to Residential Bridging Loans
Residential bridging loans provide a short-term financing option for individuals who need immediate access to funds for purchasing a new property while waiting for the sale of their existing property.
This guide will explain what residential bridging loans are, their usage, loan terms and criteria, eligibility requirements, ideal usage scenarios, applicable property types, features, as well as the advantages and disadvantages associated with these loans.
Contents
What are Residential Bridging Loans?
Residential bridging loans are temporary loans designed to bridge the financial gap between the purchase of a new property and the sale of an existing property. They offer quick access to funds and can be an ideal solution when timing is critical.
Residential Bridging Loan uses
Residential bridging loans can be used for various purposes, including:
- Purchasing a new property before selling an existing property.
- Financing property refurbishment, development or renovation projects.
- Avoiding property chain breaks caused by mortgage delays by providing immediate funds for a new purchase.
- Financing auction property purchases where a quick completion is necessary.
- Acquiring properties that do not meet traditional mortgage lending criteria.
Typical loan terms and criteria
Loan Amount: Bridging loans typically range from £26,000 to several million pounds, depending on the lender and borrower's circumstances.
Loan-to-Value (LTV) Ratio: Lenders generally offer up to 70-75% of the property's value as a loan, but this can vary based on factors such as the borrower's creditworthiness and property type.
Loan Duration: Bridging loans usually have terms of 3-24 months, although longer durations may be available depending on the lender.
Interest Rates: Rates can be higher than those of traditional mortgages due to the short-term nature and perceived higher risk. Rates may be fixed or variable.
Repayment Options: Bridging loans can have various repayment options, such as monthly interest payments, retained, rolled-up interest, or a combination of both.
Exit Strategy: Lenders will require a clear plan for repaying the loan, typically through the sale of the existing property or refinancing.
Eligibility for Residential Bridging Loans
Individuals: Bridging loans are available to individuals, including homeowners, property investors, and developers.
Creditworthiness: Lenders will assess the borrower's credit history, income, and ability to repay the loan.
Property Valuation: The property being purchased and any additional collateral offered will be evaluated by the lender.
Exit Strategy: A viable plan for repaying the loan must be demonstrated to the lender.
In what situations can Residential Bridging Loans help?
Property Chain Breaks
When buying a new property before selling the existing one, bridging loans can prevent delays and ensure a smooth transition.
Auction Purchases
Bridging loans enable quick financing to secure a property at auction, where completion deadlines are often tight.
Property Refurbishment & Renovation
Bridging loans provide funds for property development projects or renovations before longer-term financing is arranged.
Purchasing Non-Standard Properties
Bridging loans can be used for unconventional properties that may not meet traditional mortgage criteria.
Properties suitable for Residential Bridging Loans
Residential bridging loans can be used for various property types, including:
- Residential homes, flats, apartments, and houses.
- Uninhabitable or non-standard construction properties.
- Auction properties.
- Properties requiring substantial renovation or refurbishment.
Residential Bridging Loan features
Speedy Application Process: Bridging loan applications can be processed quickly, often within a few days.
Flexible Repayment Options: Repayment structures can be tailored to the borrower's needs, such as monthly interest payments or rolled-up interest.
No Early Repayment Charges (ERCs): Some bridging loan products offer the flexibility to repay the loan early without incurring additional charges.
Second Charge Loans: Bridging loans can be used as a second charge alongside an existing mortgage, allowing borrowers to access additional funds.
Flexible Lending Criteria: Bridging loan lenders often have more relaxed lending criteria compared to traditional mortgage lenders.
Advantages of Residential Bridging Loans
Quick Access to Funds: Bridging loans provide fast access to capital, enabling borrowers to act swiftly in competitive property markets.
Flexibility: These loans can be tailored to individual needs, offering various repayment options and flexible lending criteria.
Bridge Property Chains: Bridging loans help prevent property chain breaks, ensuring a smoother buying and selling process.
Property Development Opportunities: Bridging loans facilitate property development projects by providing the necessary financing.
Disadvantages of Residential Bridging Loans
Higher Interest Rates: Bridging loans generally have higher interest rates compared to long-term mortgages.
Short-Term Nature: These loans must be repaid within a short duration, which may increase the financial burden on borrowers.
Potential Risks: If the sale of the existing property is delayed or falls through, borrowers may face challenges in repaying the loan.
Limited Loan-to-Value Ratio: Bridging loans typically have lower loan-to-value ratios compared to traditional mortgages, requiring a larger deposit or additional collateral.
Conclusion
Residential bridging loans offer a temporary financing option for individuals seeking quick access to funds during property transactions or development projects.
They can be used in a variety of scenarios and provide flexibility, but borrowers should carefully consider the higher interest rates, short-term nature, and potential risks associated with these loans.
We're experienced residential bridging loan experts who arrange short term finance for property owners, securing you the best deal from over 200 bridging loan providers including private investors and family offices.
Get expert assistance today, we're on hand to answer any questions about bridging loans.
Call our friendly team on 01202 612934, we're ready to help.
