Bridging Finance: Quick & Flexible Property Loans Guide
Our Bridging Finance Service Provides
- Market-leading bridging finance from £50,000 to £25 million.
- Competitive interest rates from 0.44% per month.
- Lower rates for £1 million+ finance.
- Flexible terms ranging from 3 months to 3 years.
- Loan-to-value (LTV) up to 80%, with the potential to go higher if other assets are available.
- Options for 1st and 2nd charge loans. Interest roll-up choices for your convenience.
What is Bridging Finance?
Bridging finance is a specialised short-term loan designed to provide a temporary cash flow solution or 'bridge' before permanent finance becomes available. The process of obtaining bridging finance is relatively straightforward, similar to a traditional mortgage application. The loan is secured against your property, and the lender performs independent property valuation and legal checks before placing a legal charge on the property.
The key to successful bridging finance is having a realistic and viable exit strategy. This typically involves selling the asset or replacing the bridge loan with a longer-term mortgage in the case of residential bridging.
How Does Bridging Finance Work?
Bridging finance is commonly used to address temporary cash flow challenges, such as purchasing a new property before selling an existing one. By providing short-term funding, bridging loans allow individuals to secure a property quickly while waiting for the sale of their current home.
Loan amounts for bridging finance can start from £25,000 and vary depending on individual circumstances and the chosen lender. If you're seeking bridging finance, you can start by getting an initial quote via our free bridging loan calculator. This will give you an idea of cost, but for more information on what a bridging finance will cost - you can take a look at our guide on bridging loan costs.
What are the Different Types of Bridging Finance?
There are two main types of bridging finance:
For context, regulated bridging finance applies to properties intended for residential use and is authorised and regulated by the Financial Conduct Authority (FCA). Whereas unregulated bridging finance applies to investment properties and offers various funding solutions for different projects, including light or heavy refurbishments.
Common Uses of Bridging Finance
Bridging finance can be used for a range of purposes, including:
- Bridging the gap between property purchase and sale.
- Facilitating property downsizing or upsizing.
- Providing funds for short-term lease finance.
- Securing a property purchase in a competitive auction.
- Supporting the purchase of a property abroad.
- Maintaining the ability to buy a property if the home-buying chain breaks down.
- Bridging finance for property development projects.
- Extending property leases.
- Improving commercial properties, including conversions from commercial to residential.
“This type of finance is versatile, and applicable to all sorts of scenarios - for instance, take a look at our latest case study. Here, we helped are clients during a stressful period of divorce and got them the bridging finance they needed in order to sell the family home” - Sam O'Neil, Head of Bridging.
Bridging Finance for Various Property Types
At Bridging Loans Direct, we understand that each property transaction is unique. And our bridging finance solutions cater to a wide range of properties. Here are some examples.
Whether you're buying before selling, downsizing, upsizing, or releasing funds from your home, our bridging finance options have you covered. We also provide finance for short-term lease, auction purchases, and more.
Development & Refurbishment
Need fast finance for development projects or funding for light and heavy refurbishments? Look no further. We also finance unmortgageable properties and land purchases with planning considerations.
Large Bridging Loans
For substantial transactions, otherwise known as large bridging loans - we offer bridging loans with competitive rates, up to 80% LTV, and specific minimum net income requirements.
Bridging Finance for Business Purposes
Our bridging finance extends beyond property purchases. We offer finance for various business purposes, such as; Paying HMRC tax bills, purchasing land or new premises, and providing a deposit for a new purchase. You could also use it also for supporting your business’s growth.
Alternative Asset Consideration with Bridging Finance
We understand that assets go beyond traditional property. We consider alternative assets like pensions, investment portfolios, fine art, and classic cars for bridging finance options. Our team of experts is dedicated to providing a friendly and professional service, ensuring you get the funds you need at the best available rates. We understand the importance of meeting tight deadlines and strive to provide a fast turnaround time. And, in some cases, you can receive your funds within 5 to 7 days.
"Discover how our bridging loan solution swiftly transformed a stalled extension project into reality for a couple eager to enjoy their home sooner." - Sam O'Neil, Head of Bridging
Understanding Bridging Finance – FAQs
To help you understand bridging finance better, we've compiled a list of frequently asked questions:
What are the benefits of bridging finance?
The benefits include quick access to funds, flexibility, and the ability to secure properties before they are snapped up by other buyers.
What are the risks associated with bridging finance?
The main risk is the need for a viable exit strategy. If the loan cannot be repaid as planned, it could result in financial difficulties.
What are the eligibility criteria for bridging finance?
Eligibility varies among lenders but typically includes property valuation, creditworthiness, and a viable exit strategy.
What are the interest rates for bridging finance?
Interest rates vary depending on the loan amount, property type, and other factors. Our rates start from 0.44% per month.
Can I get bridging finance as a UK expat living abroad?
At Bridging Loans Direct, we offer bridging finance options for UK expats living abroad. Whether you're looking to purchase a property in the UK or release funds for other purposes, we can help you secure a bridging loan tailored to your specific circumstances.
What is the minimum deposit required for bridging finance?
The minimum deposit required for bridging finance typically depends on various factors, such as the loan amount, property type, and the lender's criteria. Generally, bridging loans may require a deposit of around 30-40% of the property's value, but this can vary. Our team can assist you in finding the best solution based on your financial situation.
Can I get bridging finance with adverse credit history?
It is possible, yes. We understand that each client's financial situation is unique, and we work with a panel of lenders, some of whom consider applications from individuals with adverse credit histories. While interest rates may vary, we strive to find the best possible bridging finance options tailored to your specific circumstances.
Are there any restrictions on how I can use bridging finance funds?
Bridging finance funds can be used for various purposes, including property purchase, refinancing, development projects, and business growth. However, it's essential to discuss your intended use of the funds with our team, as certain restrictions may apply based on the lender's criteria and the nature of the project.
Bridging Finance - Your Path to Quick and Efficient Funding
With our comprehensive bridging finance options, Bridging Loans Direct is your trusted partner in achieving your property and financial goals. Whether you need funds for residential or commercial property transactions, development projects, or business purposes, we have the expertise and resources to make it happen. In working with us, we can provide valuable guidance and ensure a smooth borrowing experience. Explore the possibilities of bridge loans, understand your needs, and make informed decisions to achieve your property ownership goals.
Take the first step today by contacting Bridging Loans Direct at 0800 368 9344, to discuss your requirements and get started on your bridging finance journey. Our friendly and professional team is ready to assist you every step of the way.