A small bridging loan is short-term finance from £26,000 available within three days from initial application.
Traditional short-term bridging finance with minimal fuss and minimal fees.
We can arrange lightning-fast mini-bridging loans using in-house valuations, dual representation solicitors, and agile private lenders, some of the quickest decision-makers in the UK for bridge lending.
Our lending panel are ready to lend and considers all projects and circumstances on their own merits.
Our small bridging loan service
- Market-leading bridging loans from £26,000
- Monthly interest rates from 0.44% to 2.00% per month
(Lowest rates for less than 50% LTV) - LTVs up to 80% (up to 100% finance if additional collateral is available)
- Quick automated valuation options and dual legal representation
- No monthly payments with interest rolled-up options
- Terms up to 24 months
What can small bridging loans be used for?
In our experience, small bridging loans are typically used as:
- Tax bridging loans to settle tax bills such as VAT, Corporation Tax or Self Assessment
- Land bridging loans to acquire time-critical land opportunities
- Property refurbishment loans to fund the purchase and light refurb of a property
- Auction finance to buy an investment property at auction
- or to raise immediate cash for almost any urgent purpose!
Or raise instant cash to solve a time-sensitive situation for you or your business.
Arrange a call with our experts today and get our lowest-rate, no-obligation quote.
Small Bridging Loan Criteria
| Loan to value (LTV) | Up to 80% maximum |
| Loan term | 1 to 24 months |
| Loan amount | £26,000 up to £750,000 |
| Interest options | Rolled-up & retained |
| Interest rates | From 0.44% |
| Decision | Immediate decision in principle |
| Completion | 3 days to 7 days |
| 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 |
2024 Small Bridging Loan Guide
Small bridging loans are critical for those needing fast, short-term finance. Although they're called "small", many other types of loans are, in fact, much smaller, including overdrafts, personal loans, and payday loans. Bridging loans are typically large, so even a small bridging loan still represents a significant sum.
These loans bridge the gap between an immediate financial requirement and securing longer-term financing or the sale of an asset. With the capacity to borrow amounts starting as low as £26,000 for unregulated bridging loans, these loans offer a lifeline for covering urgent financial needs or seizing quick-turnaround opportunities. This guide reviews the essentials of small bridging loans, covering everything from borrowing criteria, interest rates, and uses to the speed of access, repayment terms, and the application process, providing a comprehensive overview for potential borrowers.
Contents
What is a Small Bridging Loan?
A small bridging loan is a short-term financing that facilitates an immediate funding requirement until a longer-term financing or sale of an asset can repay the facility. These loans are useful for covering short-term financial needs or capitalising on time-sensitive opportunities.
What's the smallest amount I can borrow with an unregulated bridging loan?
The smallest amount you can borrow with a small, unregulated bridging loan is £25,000. However, many bridging lenders require it to be just a little higher at £26,000 to avoid ambiguity that it is an unregulated loan. Those who offer regulated bridging loans can provide bridging loans of lower amounts.
Interest Rates for Small Bridging Loans
Interest rates for small bridging loans are generally higher than those for larger bridging loans, reflecting the loan's short-term nature and high-risk profile. Rates vary widely between lenders and are influenced by loan-to-value ratio, loan term, property location, type and quality.
Uses for Small Bridging Loans
Small bridging loans can be used for various purposes, including but not limited to property purchases, auction buys, home renovations, business cash flow support, and urgent tax liabilities. Their flexibility makes them a valuable tool for addressing immediate financial needs.
Speed of Access
One of the key advantages of small bridging loans is their quick processing times. Applicants often receive funds within days of application, making them ideal for urgent financial needs or seizing short-term investment opportunities.
Repayment Terms
Repayment terms for small bridging loans typically range from a few months up to 24 months. These loans are designed to be repaid quickly, often when the borrower secures longer-term financing or sells an asset.
Early Repayment Charges
While some lenders may impose charges for early repayment, this is unusual in the UK. However, many bridging loan providers offer flexible repayment terms with no penalties for early settlement, appealing to borrowers who wish to minimize interest costs.
Required Security
A charge secures small bridging loans against property or other valuable assets. Depending on the lender's requirements, the type of security accepted can vary, including residential properties, commercial properties, or land.
Borrowing with Bad Credit
Yes, obtaining a small bridging loan with bad credit or non-status credit is possible, as lenders primarily focus on the value of the collateral and the viability of the exit strategy rather than the borrower's credit history.
Fees
Borrowers should know various fees associated with small bridging loans, including arrangement, valuation, legal, and broker fees. These should be considered when calculating the total cost of the loan.
What's an Exit Strategy?
Lenders require a clear and feasible exit strategy before approving a bridging loan. This could be the sale of the property, refinancing, or another repayment method at the end of the term.
What's the application process for a small bridging loan?
To obtain a small bridging loan, it involves:
- Application & Offer. This is sometimes known as Offer in Principle (OiP), Decision in Principle (DiP) or Agreement in Principle (AiP).
- Survey & valuation. This can be completed in person or by an automated/desktop valuation.
- Underwriting. This is the process of the lender checking the borrower and details provided for the loan application to ensure that it fits their criteria.
- Legals. This includes legal due diligence for both parties, ensuring the loan is completed by the governing law.
- Completion. This is the last step of the application process, and the funds are transferred to the client.
The speed and simplicity of the application process make bridging loans an attractive option for many borrowers.
Is a small bridging loan right for me?
Small bridging loans offer a flexible and rapid financing solution for various short-term financial needs. With their ability to be tailored to individual circumstances and the quick access to funds they provide, they are an invaluable resource for individuals and businesses alike. However, borrowers should carefully consider the costs, fees, and repayment terms to ensure a bridging loan is the right solution.
We're bridging loan specialists who arrange short-term finance for individuals and companies, securing you the best deal from an extensive network of UK bridging lenders, including private investors and family offices.
Get expert assistance today, we're on hand to answer any questions about small bridging finance.
Call our friendly team on 01202 612934, we're ready to help.
