Short-term finance secured against a property or “bridging” finance is widely used by property investors and developers as well as business owners for a variety of reasons. Bridging lenders will lend in situations where the more traditional lenders will not, and can provide loans in a much shorter timeframe if a quick completion is required. Acceptable security includes residential and commercial property of any type and in any condition, and land with or without planning consent.

A Bridging Loan is very different than a standard bank loan or mortgage – it is fast and very flexible form of short-term funding.

Short-term facilities can be used for as little as 1 day or up to 24 months, and in some cases longer. In most cases a provision for interest is deducted from the gross loan amount on completion of a bridging loan, but some lenders allow interest roll-up if interest cannot be paid monthly (“serviced”).

As the cost of a bridging loan is higher than a more traditional loan, an exit strategy is important. Exits are usually via refinance or a sale on the open market – a good strong exit will allow you to achieve the maximum LTV bridging loan.

There is a massive range of bridging lenders to choose from, so it is essential to have an understanding of the intricacies and mechanics of such facilities so the most appropriate and cost-effective option is utilised, from the right lender.

We can fast-track you through the process and identify the most suitable option swiftly.

The uses of Bridging Finance are wide ranging. Some examples are:

Fast purchase of a property. This could be from an Auction, for example. When a sale is agreed at an auction the purchaser usually has 28 days or less to complete. Bridging Finance is perfect for this.

The purchase of an uninhabitable or “un-mortgageable” property. A property is not deemed to be mortgage-able if it is not habitable. Perhaps the property has suffered from fire or flood damage, or it has no working kitchen or bathroom.

Refurbishment, restoration or conversion or a property. A bridging loan is ideal for buying a property which needs works carrying out on it. Funds can often be provided to facilitate the works on the property, as well as the purchase.

Business Tax Payments. A bridging loan could be used to raise funds quickly against a property to pay a Tax bill, or any other urgent business-related bills.

Below Market Value purchases. Bridging Finance lenders will often advance a loan based on the value of the property, regardless of the purchase price. We have helped clients obtain 100% of the purchase price using a bridging loan.

Equity release. As long as the funds being released for business purposes, and not secured by a first charge on the borrowers’ main residence, equity can be released from properties owned quickly.

Lease Extensions.

Redeeming Development Finance facilities, to allow further time for sales.

Re-bridging, where a borrower needs another bridging loan, but the existing bridging lender will not extend the loan.

Loan to Values (LTVs) of up to 80%, and up to 100% with additional security.

Interest rates from 0.4% per month, dependent on the LTV required.

Loans sizes from £25,000 upwards, with no maximum!

No redemption fees or exit fees in many cases

Available throughout the United Kingdom, and some European countries.

Bad or Adverse credit Bridging Loans available

No upper age limit for borrowers

First, Second (and even Third!) charge loans available. Some lenders will lend relying on an Equitable Charge.

Property types include Residential investment property, Buy to Lets, Semi-Commercial/ Mixed-Use, Commercial Property, Land with planning, Property Portfolios, HMOs, Ex-Local Authority, Grade 2 Listed, and rural properties.

Bridging Loans can be arranged for UK citizens, expatriates, Foreign Nationals, UK companies and Trusts, Offshore Companies and Trusts, SPVs, Funds, Executors, LLPs, sole traders, partnerships etc.

The borrower will be responsible for legal fees and valuations where applicable.

First, Second (and even Third!) charge loans available. Some lenders will lend relying on an Equitable Charge.

Property types include Residential investment property, Buy to Lets, Semi-Commercial/ Mixed-Use, Commercial Property, Land with planning, Property Portfolios, HMOs, Ex-Local Authority, Grade 2 Listed, and rural properties.

Bridging Loans can be arranged for UK citizens, expatriates, Foreign Nationals, UK companies and Trusts, Offshore Companies and Trusts, SPVs, Funds, Executors, LLPs, sole traders, partnerships etc.

The borrower will be responsible for legal fees and valuations where applicable.