Bridging
Loans

 

Interest Rates from 0.39% per month

Up to 80% Loan to Value

No minimum term

Bridging Loans

What Can We Offer?

Recieve a Bridging Loan offer within 24 hours

All property types are considered

Enjoy Competitive interest rates from 4.68% per annum

No minimum or maximum loan amounts

Use Bridging Finance for UK or International Property

Key Features

Borrower: Ltd Co, Individuals, Partnerships, LLP’s, Trusts

Property: Commercial, Residential, School, Hotel, Restaurant, Leisure, Care home.

Loan Size: £50,000 - £5,000,000 

Loan period: Maximum 2 years (Minimum 3 months)

LTV (Loan to Value): at origination of the cost of the purchase maximum 70% for residential, 60% for other eligible properties (subject to MV from Bank panelled valuers)

Non-refundable Interest paid upfront for the whole loan term or serviced interest options available 

Applicable reference rate: BOE base rate called “BOE” or any other reference rate decided by the bank.

Arrangement fees to Bank:  1.5%  and indicative interest rate: 6.40% per annum + Bank Discount Rate of 0.10%

Exit strategy- Refinance with a BTL loan or sell the property.

In case of refurbishment, the contractor warranty for the works performed and the contractor indemnity insurance is required

You can have a bridging loan put in place within a month or even sooner. 

The Following Topics Are Covered 

What Is A Bridging Loan?

A bridging loan is a form of short term funding secured against assets such as property, either residential or commercial. In the past, bridging loans were used for chain break or buying properties at auctions.

 

This has now expanded to other areas such as property development, light refurbishments and land acquisitions.

We have access to bridge lenders who do a bridge, refurbishment and buy to let all combined as one product.  Our rates for such a product is the most competitive on the UK market.

Where A Bridging Loan is Appropriate

Chain Breaking

Where Bridging Finance is required to enable the transaction to complete speedily. 

Often where speed is essential, or the property may be unmortgageable. We can help until the bank's mortgage is ready.  

Once completed and tenants are in place, the bank can refinance the existing loan, in the meantime, we'll execute the loan for acquisition and refurbishment.  

How Does A Bridge Loan Work?

You need a deposit 

The minimum deposit typically needed is about 20-25%.  

Interest Rates are High

Due to Bridging loans being short term and at times secured against riskier properties, lenders will charge higher interest rates, starting from about 0.39% per month. 

They're Short term

Loans typically range with a minimum period of 3 months and can go up to 24 months. 

You'll need Evidence of a Repayment Vehicle

The lender will require that you give evidence of the repayment vehicle/exit strategy. i.e how are you going to repay the loan at the end of the term.  For example,  selling the property or refinance onto a new product i.e a buy to let mortgage. 

There are no monthly payments

Most bridging lenders allow for the loan to have the interest retained in the loan itself. This means you won't have to make any monthly payments due to the loan plus payments are paid off in your exit strategy. It's important to note that the interest payments that roll up will have interest charged on them alongside the main borrowing. You can also opt to make monthly payments if you wish to keep the balance from increasing. 

 

There are costs to consider

You'll need to pay for a valuation fee, an arrangement fee which is typically 1-2% of the loan amount and solicitors fees.

This article is intended to provide a general understanding of the topic. The contents should not be treated as advice. 

 Different Types of Bridging Loans 

What Fees Can I Expect When Taking Out A Bridging Loan?

In addition to the interest payments, there are a number of fees that must be paid when setting up a new loan. The main costs can be broken using our bridging loan calculator

Further Reading

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