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A UK independent bridging loan broker with access to all products in the market

Online since 2004, we're a name that you can trust

The navigation buttons on the left show you which products are available for business users and which are available for individuals.

The contact form to request free advice and a no obligation quote is at the bottom of this page.

All quotations for bridging loans are provided to you free of charge and on a no-obligation basis - there is no pressure, make your decision in your own time.

What is a bridging loan

A bridging loan is a short-term loan that could help you purchase or refinance a property quickly. The loan to value (LTV) range is 50 – 75%, with loans from 12 months to 2 years and are available for residential, land, commercial, and mixed use – commercial and residential. A large bridging loan is where the loan size is greater than £2,500,000.

They are popular with those looking to buy a property before their existing home is sold as well as investors. Businesses typically use them to free equity in order to boost cash flow. They are also used by home-movers to ‘break’ property chains by providing a short-term source of finance when there is a delay between sale and completion dates or by buyers bidding on property at auction, and by landlords and property developers to secure renovation finance for quick sale or to refurbish a property that is considered uninhabitable prior to obtaining ordinary mortgage finance. Bridging loans can be secured as a first or second charge against commercial property, buy-to-let property, dilapidated property and land or building plots.

They are defined as either ‘open’ or ‘closed’ depending on your exit strategy. A loan is ‘closed’ if the borrower has a clear and credible repayment plan or exit strategy in place, such as the sale of the property or a move to a mortgage etc. Open bridging loans are riskier to both the borrower and lender due to the greater likelihood of default which is why they are incredibly difficult to obtain.

Bridging loans can in the name of limited (ltd) companies or individuals. Our broker can also arrange loans for foreign nationals, overseas or even offshore companies, where reasonable due diligence can be undertaken.

Types of bridging loan available

Regulated bridging loan - is a form of short-term, property backed loan which is secured against your home. A bridging loan becomes ‘regulated’ when the loan is secured against a property that is currently occupied, or will be occupied in the future, by the borrower or any member of their immediate family.

It is regulated because it is classed as residential consumer borrowing, the same as your mortgage.

When you need to raise money quickly to secure your next perfect home, regulated bridging finance could well be the right product for you.

Regulated bridging loans are available from 0.48% depending on your personal circumstances

Unregulated bridging loan - is a short-term, property-backed loan which is designed to ‘bridge’ a gap in funding A bridging loan. It covers any bridging loan for property that is not going to be occupied by the borrower or any member of his/her immediate family.

This type of finance is currently cheaper than ever and can be used for a variety of purposes.

Bridging loans secured against investment properties – up to 80% LTV & rates from 0.44%

Unregulated bridging finance can be completed very quickly, sometimes even on the day of application.

What can I use a bridging loan for?

They can be used in several situations. The most common uses are:

  • To fund a property purchase or refinance quickly.
  • To purchase a property at an auction.
  • To purchase an otherwise un-mortgageable property.
  • To buy a property before your existing property has sold.
  • To buy below market value property without putting down a deposit.
  • To fund a property refurbishment project – including options for pensioners to renovate their home before selling or to raise care home funds while a property is being sold.
  • To finance property or a self build property or land while undertaking an application for planning permission.

Why use a broker for your bridging loan?

A broker is duty bound to serve your best interests, so provide you with the most suitable product at the best rate available to them. You’ll see below a number of scenario’s where a broker’s knowledge of product types and uses together with a knowledge of what lenders are willing and unwilling to fund and their access to broker only products can be used to your advantage.

Planning gain - You can use a bridging loan for the purchase of a piece of land, where you have the intention of applying for planning permission. Once planning permission is granted, you would then refinance with development finance, to allow you to proceed with the build. You can borrow at 50% LTV with loans from £26,000 to £500,000.

Bridging loans for Property refurbishment are short-term loans designed for property investors, landlords and property developers who are looking to refurbish, or convert a property before renting or selling.

Essentially, if you purchase a property, extend it and refurbish the interior or exterior, the value could increase significantly ready for it to be sold. All sorts of works can be funded, including title splits, conversions and multiple properties on one title. Acceptable exit strategies to the lender including selling the property or refinancing the bridging loan to a mortgage product.

A second charge bridging loan is a short-term loan, up to 2 years, which is secured against a property that already has a mortgage outstanding. If you’re looking to raise funds to do a loft conversion, extension, or other improvements to your property and already have a mortgage outstanding, a this would enable you to raise the required funds. As your main mortgage is not being repaid, the early repayment charges would not be paid, making a significant saving.

Once the works are complete, a refinance onto a secured loan would be possible, moving the debt to a lower interest rate. However, a secured loan may not be possible initially because  many lenders are unwilling to lend where heavy refurbishment works are being undertaken on a property,

Auction Finance - bridging loans are used to purchased properties at auction as they can comfortably be completed in the 28-day completion timescale. Auction finance is available from £25,000 with no maximum loan size and fund up to 80% LTV (loan to value), or up to 100% with additional security or if the property has been bought below market value.

Bad Credit Bridging loan - Your credit history is far less important with a bridging loan application than it is with a mortgage or other secured loan because the key to the lender being paid back on time is your exit strategy - ability to refinance or sell the property, rather than keeping up monthly repayments. Lenders will consider most circumstances, including; defaults, CCJs, mortgage arrears, bankruptcy, IVAs, debt management plans and history of payday loans

It may be possible to use a bridging loan to stop bankruptcy proceedings or repossession depending on your overall circumstances.

First time Buyers - there are a number of reasons why a first-time buyer may need to consider borrowing via short-term bridging finance as opposed to applying for a mortgage. The main ones are as follows:

  • To buy and refurbish a property before taking out a mortgage or selling the property
  • To invest in a new property below market value
  • To complete the purchase of a property bought at auction
  • Bridging loans are available up to 80% of the value of the property or 70% if you are planning on living in the property (although this depends on the lender).
  • When you’re looking to undertake a refurbishment project, we may also be able to provide the funds needed to undertake the works on the property. However, this is only a realistic option where there will be a strong uplift in the property value to justify the lending amount involved in bridging finance.

This could also be an option for a first time property developer.

Pensioners - bridging loans for the over 65s – market leading rates from flexible lenders

Unlike mortgages, your income and credit history are not the most important factors when assessing a bridging loan application. The key factor in underwriting a bridging finance application is your method of repaying the loan, this is known as your ‘exit strategy’.

Lenders assess each application on its own merits and as long as you have a reliable exit in place for example selling a large property to downsize to something smaller or going into rental accommodation etc, there is a good chance that we will be able to help. Bridging loans can also be used to pay upfront care homes fees while you sell your home.

Key features:

  • Rates from 0.48% per month
  • No maximum loan sizes
  • No broker fees
  • No exit fees
  • 1-month minimum loan term
  • No monthly payments
  • 1st or 2nd charge loans available

Property Developers - raise funds to complete a project or to release equity from completed projects

 in the property development market where a quick turnaround can mean the difference between turning a profit or missing out a bridging loan can be an ideal solution. Bridging loans can be used to fund the acquisition of a site that requires planning permission, to find a conversion or light or heavy development and to refinance while a completed scheme is sold. it’s possible to borrow up to 80% of the property value from a trusted lender with manageable repayment terms. Lower loan to values (LTVs) will result in lower interest rates, with the lowest interest rates available up to 50-55% LTV. For commercial property and land, it’s possible to borrow up to 70% loan to value, with 75% possible for some semi-commercial properties.

Small Businesses - raise funds against commercial or residential property for your small business. They are fast becoming a great option for SMEs who are looking an alternative to traditional mortgages to secure property quickly. If the property purchased needs heavy refurbishment or even change of use, a bridging loan would usually be more appropriate than a commercial mortgage. This is because most lenders would not allow such heavy works to be undertaken on the property as part of the mortgage.

In this situation, bridging finance would be taken out, the works completed and then the loan can be refinanced into a mortgage. Where the works are going to result in an increase in the value of the property, you may also be able to borrow the cost of the works.

If a transaction must be completed quickly, commercial mortgage applications can take time and as such, they aren’t always appropriate when completion is urgent, for example when you want to purchase property at an auction.

In both of these scenarios, it’s realistic to arrange a commercial bridge loan in around 14 days.

Bridging loans as a source of working capital - if there is equity available in your assets, bridging finance could be an ideal option.

Residential - bridging loans secured against residential property – market leading rates and fees. They can be used as an alternative to a standard bank-backed mortgage which can benefit you when it’s necessary to act fast to secure or renovate a property in a short timeframe.

Applications are offered on an interest-only basis for up to 12 months, with the monthly interest usually either deducted from or rolled up into the loan.

A short lease or lease extension bridging loan is used to extend the lease of a property.

If you’re looking to purchase a property with under 79 years left on the lease, the property is likely to be sold at a significant discount to its freehold value. This type of loan is used to purchase the property while you extend the lease. Once the lease is extended, you can either sell or refinance to a mortgage product. Maximum LTV is from 55 to 75%, with loan amounts from £250,000 to £50 million with a maximum term of 18 months, meaning that the section 42 notice needs to have been issued by the current owner before you purchase so that it has time to go through.

Re-bridging loans are used to refinance an existing bridging loan (ie an “open” bridging loan), if you are looking for a better interest rate, or your existing loan is coming to the end of its term. The  lender will want to make sure that they are actually solving the root problem. As your exit strategy on your current loan has failed, they will want to ensure that the problem is not going to happen again.

A broker can offer bridging loans against almost any security. In addition to residential property, commercial bridging options are often used to fund:-

  • Offices
  • Professional practices
  • Care homes
  • Pubs and bars
  • Restaurants
  • Hotels
  • Guest houses
  • Retail premises
  • Business parks
  • Warehouses
  • Factories
  • Large HMO’s
  • Semi-commercial units

Key Points for all bridging loans

Bridging loans can be funded on the same day under extreme circumstances. Generally, it is realistic to expect your loan to complete in 5-14 days.

  • Property in a poor state of repair considered.
  • Borrow from 1 month up to 24 months.
  • Any security considered.
  • Interest can be rolled into the loan.
  • Loans with no early repayment charges available.
  • Lenders will consider any exit route.
  • Refurbishment or conversion accepted.
  • Adverse credit accepted.
  • Loans available throughout the UK.

Locations

We currently serve the following UK post code areas (for example AB - Aberdeen means all areas in and around Aberdeen whose postcode starts with AB) :-

AB - Aberdeen, AL - St Albans, BA - Bath, BB - Blackburn, B - Birmingham, BD - Bradford, BH - Bournemouth, BL - Bolton, BN - Brighton, BR - Bromley, BS - Bristol, BT - Belfast, CA - Carlisle, CB - Cambridge, CF - Cardiff, CH - Chester, CM - Chelmsford, CO - Colchester, CR - Croydon, CT - Canterbury, CV - Coventry, CW - Crewe, DA - Dartford, DD - Dundee, DE - Derby, DG - Dumfries, DH - Durham, DL - Darlington, DN - Doncaster, DT - Dorchester, DY - Dudley, EC - London, EH - Edinburgh, E - London, EN - Enfield, EX - Exeter, FK - Falkirk, FY - Blackpool, G - Glasgow, GL - Gloucester, GU - Guildford, GY - Guernsey, HA - Harrow, HD - Huddersfield, HG - Harrogate, HP - Hemel Hempstead, HR - Hereford, HS - Western Isles, HU - Hull, HX - Halifax, IG - Ilford, M - Isle of Man, IP - Ipswich, IV - Inverness, JE - Jersey, KA - Kilmarnock, KT - Kingston Upon Thames, KW - Kirkwall, KY - Kirkcaldy, LA - Lancaster, LD - Llandrindod Wells, LE - Leicester, L - Liverpool, LL - Llandudno, LN - Lincoln, LS - Leeds, LU - Luton, ME - Medway, MK - Milton Keynes, ML - Motherwell, M - Manchester, NE - Newcastle, NG - Nottingham, N - London, NN - Northampton, NP - Newport, NR - Norwich, NW - London, OL - Oldham, OX - Oxford, PA - Paisley, PE - Peterborough, PH - Perth, PL - Plymouth, PO - Portsmouth, PR - Preston, RG - Reading, RH - Redhill, RM - Romford, SA - Swansea, SE - London, SG - Stevenage, SK - Stockport, SL - Slough, SM - Sutton, SN - Swindon, SO - Southampton, SP - Salisbury, SR - Sunderland, S - Sheffield, SS - Southend - On - Sea, ST - Stoke - On - Trent, SW - London, SY - Shrewsbury, TA - Taunton, TD - Galashiels, TF - Telford, TN - Tonbridge, TQ - Torquay, TR - Truro, TS - Cleveland, TW - Twickenham, UB - Uxbridge, WA - Warrington, WC - London, WD - Watford, WF - Wakefield, W - London, WN - Wigan, WR - Worcester, WS - Walsall, WV - Wolverhampton, YO - York, ZE - Lerwick.

The Application Process

  1. Please complete the form below.
  2. A bridging loan advisor will then phone you back at a time convenient to you and will talk through your project with with you so that they have an outline of the scheme that you are planning to take on.
  3. The lender will usually assess your application and provide written terms within anything from 4-24 hours.
  4. Once these have been issued, you will usually have to provide the information mentioned above.
  5. The application can then be fully underwritten, and a surveyor appointed to produce a valuation report on the property.
  6. Assuming everything goes well here, a formal offer is issued, and the loan can complete subject to completion of the legal work.

We offer rapid decisions in principle – often within four hours – and our bridging loan advisors are available to answer any questions that may arise.

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