Does Lloyds bank offer bridge loans?

Lloyds Bank Bridge Loans

What are bridging loans?

Bridging loans are a short-term financial solution for financing property

As the name suggests, bridge loans assist in "bridging the gap" between selling and acquiring property – and the high-street banks (if they offer bridge loans) typically fall under this category; residential bridging loans. 

Still, many other applications can be sought via specialist lenders, and not directly through banks, with the help of a bridge loan advisor.

Can I get a bridge loan directly with Lloyds?

Lloyds bank has a specialist bridging service, only available to customers with their private bank. However, customers must have at least £250,000 banked to be used as collateral or security of similar value. 

Again, the service Lloyds offers is only helpful for residential bridging loans. When attempting to go directly through Lloyds, you can miss out on alternative options, such as those provided by specialised lenders:

• Commercial bridging loans

• Loans for property development – renovation and refurbishment

• Bridge loans to help finance auction properties 

• A bridging loan for a self-build project. 

It is best to seek the help of a specialist bridge advisor to look at all the available financial options you may not be aware of which specialist lenders offer.

Why use a bridging loan broker?

Through brokers, you will gain access to a range of lenders that you typically cannot access by yourself - including high-street banks.

In addition, brokers advise the best course of action regarding bridging finance while answering questions you might have.

Brokers create a competitive environment for lenders, meaning lower rates and potentially a favourable deal for their clients, one that an individual cannot pursue alone. 

By presenting their clients' situations to lenders, brokers are more likely to secure bridging finance that suits you by opening up more financial options and choices.

What are the advantages of bridging loans?

• Fast finance - You can secure your dream home faster if you're a cash buyer in a competitive market. Bridging loans are ideal when time is of the essence.

• Flexibility – As long as you have sufficient security, you can use bridging finance to "bridge the gap" on any property purchase, whether residential, commercial or for financing a development project. 

• Interest rates - There are higher interest rates with bridging finance, but you can "roll up" your payments so you won't have to worry about long-term interest, as you can pay it off in full without worrying about early repayment fees.

• Credit history - Bridging loans are acquired based on the property's value (the security) rather than an individual's income or credit history. Lenders will forego the stringent checks associated with mortgages when applying for bridging finance.

What will a bridging loan cost?

Bridging loans can be expensive and vary in cost, whether from a high-street bank or a specialist lender.

There are high-interest rates and additional fees to consider – yet, there are ways to mitigate some of these costs. A broker can help organise a desktop valuation or can get “dual representation” to combine legal fees for both the borrower and lender.

A bridge loan calculator can give you an idea of costs based on your financial circumstances and a lender's requirements - you can use our free one here.

However, while getting an indicative quote through the bridge loan calculator is helpful, it may not be wholly indicative of all your available financial options - we can help you with that.

Before you go to Lloyds, seek a bridging loan specialist

Our brokers can provide affordable bridging finance options through our network of specialist lenders and find you a favourable deal.

In working with us, we can help pinpoint the best bridging loan for your circumstances, and you can avoid going directly to Lloyds, which is unlikely to offer you bridging finance.