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We act as a broker, giving you access to the whole of the short-term finance market. We liaise directly with the lender and handle the full application process for you.
A short-term bridging loan can help you smoothly move to a larger property.Chat to us now
A short-term bridging loan can help you transition into a smaller property.Chat to us now
Great if you're looking to convert or renovate a property with the view to selling or renting out.Chat to us now
Perfect if you're buying land, building your own home or funding a new property development.Chat to us now
Short-term finance is ideal for closing out auction properties that you're looking to sell on or rent out.Chat to us now
Financing for commercial or semi-commercial properties, buying commercial land or renovating commercial properties.Chat to us now
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A bridging loan is a short-term loan (typically 12 to 18 months) that’s usually used to buy property. They are often used to bridge gaps in property transactions, such as buying a new home before your current one has sold.
Unlike a mortgage, they are repaid in one lump sum payment instead of monthly – for example, when your current property eventually sells.
Bridging loan fees are more expensive than mortgages and the interest rates are higher. However, you only pay interest for a short period of time compared to a mortgage, and many people find the benefits of securing the property you want outweigh the short-term costs of bridging finance.
To learn more about the ins and outs, read our step-by-step guide to how bridging loans work.
You get a bridging loan by either speaking to a bridging loan broker or going to a bridging loan lender directly.
Most people choose to use a broker, because not all lenders have the right products for everyone, and it can be difficult to compare deals and choose who to go with.
A bridging loan broker can help you determine which lender and product are right for you and your situation, while also comparing rates across the market and finding you the best deal.
More about bridging loan brokers and how they operate.
Bridging loans typically incur an arrangement fee of 1-2% of your loan size, plus interest on your loan and other administration fees.
Bridging loan interest rates are higher than mortgage interest rates and start from about 0.5% per month at a minimum, but this varies on the lender, your situation, and the market at the time (including the BoE base rate).
Other bridging loan costs include valuation fees (if required), broker fees (if you use one), legal fees, and other admin costs including redemption or drawdown fees.
Read our full guide to bridging loan costs.
Bridging loan interest rates start from about 0.5% per month at a minimum, but this fluctuates based on the market and wider economy (particularly the Bank of England’s base rate).
They also vary depending on what you’re using your bridging loan for, how much deposit or security you have, the type and location of property, and many other factors.
It’s also important to note that, unlike mortgage rates, bridging loan interest rates are displayed as monthly, not annually.
You can read our full guide to bridging loan interest rates for more information.
You can get a fast bridging loan within 72 hours. However, not all bridging loans can be arranged this fast, and it depends on your situation and the properties involved.
You’ll also likely need a broker to push an application through this fast, and it may incur additional fees from your lender and solicitor to expedite your case.
On average, most bridging loans take between 3 to 6 weeks to arrange, and this is a more standard timeframe.
See our service for fast bridging loans for more information.
You can borrow from £50,000 to £25m with a bridging loan. However, you can usually only borrow up to 60-80% of your property value, so it depends on the specifics of your situation.
Some lenders will allow you to borrow up to 100% loan to value (LTV), but in these situations you’ll often need other property or assets in the background to secure your loan against.
For a more detailed breakdown, read our guide to how much you can borrow with a bridging loan.
You generally need between a 25-40% deposit for a bridging loan.
While it's not technically referred to as a deposit, you can typically only borrow up to 75% of the value of the property you're securing your loan against with a bridging loan.
It is possible to get a bridging loan with less or even no deposit, but you’ll generally need other property or assets to secure your loan against if this is the case (such as a property you're selling).
To find out how much deposit you’ll need for your specific bridging loan plans, contact us today.
The main criteria for a bridging loan are:
Your lender will also look at the property type you’re buying, the location, the borrower type (individual, sole trader, Ltd company etc.), the type of security you’re putting down, and more.
To find out whether you’re eligible, speak to us today.
Yes, bridging loans are a good idea if they are used in the right circumstances and you are fully aware of the costs and risks involved.
Bridging loans are used every day by ordinary home buyers across the country – not just developers and investors – and they provide a valuable finance solution to help bridge a gap in funding when you might otherwise risk losing out on a dream property.
That being said, you should fully understand the fees, interest rates, repayment terms and risks involved before taking one out. So, we recommend speaking to one of our bridging loan advisors if you are unsure.
You can also read more at: Are bridging loans a good idea?
Yes, most bridging loans are regulated by the FCA.
However, bridging loans for commercial property (or for residential property that you or any family members won't be living in) are usually non-regulated.
Yes, bridging loans are secured loans against property.
They can be secured against a property you're buying, a property you're selling (particularly if you're downsizing), any other properties you have in the background, or a combination of multiple properties.
Generally, if you can reduce your loan to value (LTV) by securing your bridging loan against multiple properties, you can qualify for a lower interest rate - but, both of your properties will be at risk.
The most common alternatives to a bridging loan are:
However, bridging loans are fairly unique in what they offer: quick, large loans secured against property to buy property - and the other options listed are more suited for other financial situations.
If you're unsure if a bridging loan is the best option for you, speak to one of our advisors today.
Yes, you can get a bridging loan with bad credit.
Because bridging loans are repaid with an exit plan as a lump sum, such as selling another property, your income and credit score aren't big factors in the affordability calculations - certainly much less so than with a standard mortgage application.
For more, read our guide to bridging loans with bad credit.
Yes, a bridging loan can affect your mortgage application in the future.
However, most mortgage lenders are happy to refinance a bridging loan with a standard mortgage, and it doesn't normally cause any issues.
If you're planning to refinance your bridging loan with a standard mortgage, we recommend speaking to one of our mortgage advisors to check your plans.
Most bridging lenders will want to see a Decision in Principle from your mortgage lender as evidence of your exit plan - we can make sure your Decision in Principle is from a lender that will happily accept refinancing a bridging loan.
Yes, bridging loans can affect your credit score.
Bridging loans work in the same way as any other form of debt towards your credit profile - they don't necessarily damage your credit score, especially if you repay them on time, but if you are unable to repay your bridging loan then it will negatively affect your credit rating.
Multiple rejected bridging loan applications can also be a red flag on your credit profile which can lower your score.
It's best to speak to a bridging loan advisor to get a sense-check on your plans before you take out a bridging loan, to make sure your strategy is watertight and you're fully aware of the risks.
Some banks that offer bridging loans are:
Most highstreet banks no longer offer bridging loans.
We recommend using a bridging loan broker to help find the best lender for your bridging loan requirements.
No, you cannot use a bridging loan for a deposit on a new home.
A mortgage provider simply will not accept funds from another loan provider for your mortgage deposit.
Bridging loans are usually repaid as a lump sum at the end of your term. However, the interest on your loan can either be:
Bridging Loans Direct brings you the best short term finance deals in the UK market.
Working with market leading specialist finance lenders and brokers we help you to find the right product for your situation.
Whether you are bridging a funding gap between purchase and sale, downsizing, refurbing or converting a property, restructuring a portfolio, raising working capital or refinancing an existing debt facility we can help you find a bespoke solution.
With a focus on customer service we can help you find competitively priced finance for your property needs.