Shawbrook Bank Bridge Loans

What are bridging loans?

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

A Bridge loan’s primary function (and its most popular use) is to assist with "bridging the gap" between selling and acquiring property – yet it has many other applications.

High-street banks no longer offer bridging in the same capacity they once did, and when they do, it's on narrow and limited terms. 

Comparatively, specialist lenders such as Shawbrook offer a wide range of lending products, including bridging, and are one of many lenders willing to meet both niche and more general bridging needs. 

Can I get a bridge loan directly with Shawbrook? 

Yes – however, it is advisable to go through a broker to access all your available options. 

While specialist lenders (such as Shawbrook) offer more than the high-street banks, it is still essential to consider the possibility of more favourable deals elsewhere.

The opportunities offered by other lenders may only be sought from a bridge loan advisor who knows the market and can work through their network to find the best solution for you. 

Specialist lenders offer bridge loans for a long list of purposes, some examples include;

Why use a bridging loan broker instead of going to a lender directly?

Through brokers, you will gain access to a range of lenders that you typically cannot access by yourself.

In addition, brokers advise the best course of action regarding bridging finance while answering questions you might have – they will guide you through the process, as it can be quite challenging to do so alone.

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. 

Additionally, many specialist lenders prefer to work through brokers as they have long-established working relationships with them.

By packaging their clients' situation in a certain way, brokers are more likely to secure bridging finance better suited to your situation while offering choices and flexibility as to how you proceed. 

What are the key 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.

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 directly to a lender, seek a bridging loan specialist first

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 lenders; instead, see what the market offers from competing lenders through us.