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Why Use A Broker For A Bridging Loan Application

Updated: Dec 20, 2022

Why would you require a Bridging Loan Broker?

Though there are many reasons to prefer using a broker, the main reason is that they can ensure you choose the best solution at the lowest cost.

This article provides all the details you need to understand about what bridging loan brokers can offer, including why their assistance is so successful and what their typical fees are.

We'll Cover The Following Topics:

How Can Bridging Loan Brokers Help

It can be difficult to navigate this area of finance due to the constant changes in the market.

Using a specialist broker gives you access to an expert who is up-to-date on all of the current information, making it possible for you to proceed from beginning to end.

The market for bridging loans frequently adjusts and fluctuates, so using a specialist broker is the only way to gain access to up-to-date information. In addition to that, an advisor is able to conduct a deep financial investigation, including your exit strategy to help you make the right decisions.

To be connected with a skilled broker, simply send us an enquiry.

Larger And Longer Bridging Loans

There are limitations on how much most lenders are willing to offer. If you're looking for someone who would be willing to stretch the loan to value normally offered to fit your requirements, having access to a broker can be a valuable resource.

Plenty of bridging lenders also have maximum timeframes for their loans, in which case an experienced broker may be able to assist you in finding the appropriate lender to match your required term and requirements.

Securing The Best Rates

It’s difficult to come across a good short-term, interest-only loan deal if you don’t know where to look.

While these loans tend to charge high-interest rates, you can still find some excellent deals if you know where to look. Many lenders don’t advertise their best deals, so you may need to contact a trusted broker in order to access them.

Speed Of Finance

Using a specialist broker to apply for a bridging loan is likely to result in a faster application turnaround time. This is because they will already have established connections with lenders, making it easier for you to connect with the right lenders from the start.

New Property Investors

When applying for a loan through a broker, this demonstrates you are serious and also points you to the broker companies that will accept your application.

Your broker can assist you in preparing your application and identifying companies that will finance bridge loans to new investors.

Non-Standard Construction Properties

The type of construction will have a big impact on which loan providers will be willing to offer you finance.

A non-standard construction will most likely reduce the number of lenders willing to finance the property. You may be able to overcome these issues by using a specialist broker.

Commercial Properties

Getting financing for commercial projects can be difficult, with plenty of bureaucracy and red tape. There will also be different kinds of commercial properties that some lenders will not finance.

Alternatively, lenders may offer poorer rates for the added risk. By using a broker, you can cut through the usual hurdles while also getting the best rates.

Adverse Credit

An expert will still be willing to speak with you if you have an adverse credit score, so don't be concerned. It might still be possible for you to find a borrowing option, even if you have a poor credit score.

You may be connected to banks that will still accept applicants with a adverse credit history. This is because your exit strategy will not be affected by the issues you're dealing with.

Land Acquisition

Using a Bridging Loan to buy land for a residential or commercial property can be quite advantageous.

You can use this flexible financing to secure the sale and then work on acquiring the remainder of the funds, making this a fast and efficient option.

By working with a professional broker, you can leverage their expertise and knowledge to help you structure the remainder of the financing. This may make it simpler to meet exit strategy requirements.

Different Types of Bridging Finance A Broker Can Assist with

Specialist brokers can assist with these kinds of finance, although they are the most common. Here are some examples:

Unregulated bridging loans are frequently utilised for commercial and buy-to-let properties.

Open Bridging Loan: There is no set date for when you will be able to repay an open bridging loan, therefore you have some added flexibility. Bridging loans are still short-term solutions and the maximum term length is usually three years.

Closed Bridging Loan: With a closed bridge loan, you set a date to repay the loan. This might be a good option if you have an exchange agreement or sale contract locked in with a specific date.

Can Bridging Finance Brokers Help With My Exit Strategy?

Regardless of whether you can do it, the exit strategy is a key element in any property bridge loan. The lender must be certain that you have a plan to pay them back when the loan expires.

The borrowing is short-term, so there must be a robust plan for paying back the money.

There Are Several Other Possible Solutions To Look At:

  • Refinancing and capital raising- an existing residential, commercial, or residential-to-commercial mortgage.

  • Sale of a Developed Property - selling the developed property and repaying the bridge loan with the proceeds.

  • Selling Another Portfolio Property - selling another home and using the money to repay the debt.

That is just a sampling of the possible solutions. A bridging finance broker is crucial. We'll assess your exit strategy and compare it to our evaluation of the lender's policies to see if it will pass.

We Can Provide You With A Variety Of Alternatives If Necessary:

  • Using another asset or property as additional security.

  • Applying to a different lender with a more flexible risk appetite.

  • Providing independent valuations or market analysis reports to support the estimates regarding the finished property value or possible sale price.

How Much Does It All Cost?

Fees vary according to a number of factors, including your personal circumstances. The fees will depend on a variety of factors, including the amount you seek to borrow and the length of the loan.

After receiving a revenue commission from the lender, some brokers will demand an upfront fee. The fees are usually around 1% in this category. The costs are affected by the LTV and term length, as well as the financial circumstances.

Accelerated Finance are fee-free brokers, we get paid from the lender once the finance is complete. You can read more about our process and how we work here

Documents Required to Move Forward

Gathering all of your essential documentation in advance is a decent idea.

This small step of preparation will help get your application off to a good start, resulting in a smooth process from the start.

Here's What You Should Have To Hand:

  • A plan for exiting the market; your broker can assist you in creating one

  • Photo identification (driving license, passport, or utility bill); 3 months of bank statements

  • 3 months' bank statements

  • Asset and Liability Statement

  • Proof of Address (i.e a utility bill or council tax bill)

  • Payslips, P60s, or SA302 tax returns if you're self-employed

  • In addition to the income information listed above, you should also have credit reports (you can get them in advance)

  • If you must sell your house before you apply, details of any dependents or liabilities you may have

  • Planning permission or a valuation certificate if applicable

  • Your solicitor's contact details

Getting Started: Speak With A Specialist

There are many nuances to this sector of lending, and you should locate the most suitable option for your situation.

You also do not want to pay more than you must when applying for a bridging loan. Please contact us at 0208 952 5280 or send us a message. We will set up a no-obligation chat for you.

Further Reading


This article is intended to provide a general understanding of the topic. The contents should not be treated as advice. Accelerated Finance Limited only considers applications for commercial or investment properties. Accelerated Finance Limited is not regulated by the financial conduct authority and only provides unregulated loans via our network of lenders. Your property is at risk if you fail to make payments on a Mortgage Contract. Please note that Accelerated Finance Limited and its employees do not give financial advice or recommendations on any product.

Author: Aakash Nagrani - Director 

Aakash Nagrani Author
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