Bridging Loans
Bridging Loans
Need short-term finance fast? Bridging loans provide quick, flexible funding to bridge the gap between buying a property and securing long-term finance or selling an existing one. Whether you're buying at auction, funding renovations, or waiting for a sale to complete, we connect you with specialist advisors who can arrange bridging finance quickly and efficiently.
What is a Bridging Loan?
A bridging loan is a short-term secured loan, typically lasting from a few weeks to 18 months, designed to provide immediate funding while you arrange permanent finance or wait for a property sale. It's secured against property—either the one you're buying or one you already own—and is commonly used in property transactions that need to move quickly.
When You Might Need a Bridging Loan
Property Auctions
Auction purchases require completion within 28 days, often too fast for a traditional mortgage. A bridging loan provides the funds you need to complete on time, giving you the opportunity to secure properties at competitive prices.
Chain Breaks
If your property chain collapses or you've found your dream home but haven't sold your current property yet, a bridging loan lets you proceed with the purchase without losing the opportunity.
Renovation & Development
Planning to renovate or develop a property before selling or refinancing? Bridging finance covers the purchase and renovation costs, allowing you to add value before securing long-term funding or selling at a higher price.
Unmortgageable Properties
Some properties don't qualify for traditional mortgages due to their condition or type. A bridging loan lets you buy the property, carry out necessary work, and then refinance with a standard mortgage once it's mortgageable.
Business Opportunities
Need to move quickly on a commercial property or business opportunity? Bridging loans provide fast access to capital when timing is critical.
Downsizing
If you're downsizing and want to buy your new home before selling your current one, a bridging loan provides the funds to secure the new property without waiting for your sale to complete.
Types of Bridging Loans
Closed Bridging Loan
A closed bridging loan has a fixed repayment date—for example, when your property sale completes or your mortgage offer is confirmed. Because the exit is certain, closed bridging loans typically have lower interest rates.
Open Bridging Loan
An open bridging loan doesn't have a fixed repayment date, giving you more flexibility. You'll usually have up to 12 months to repay, though some lenders offer longer terms. Open bridging loans are ideal when your exit strategy is less certain, but they typically come with higher interest rates.
First Charge Bridging Loan
A first charge bridging loan is the primary loan secured against your property. If you default, the bridging lender has first claim on the property.
Second Charge Bridging Loan
A second charge bridging loan sits behind an existing mortgage or loan. The second charge lender is repaid after the first charge lender if the property is sold. These loans typically have higher interest rates due to the increased risk.
How Bridging Loans Work
- Fast Approval – Bridging loans can be arranged in days or weeks, much faster than traditional mortgages.
- Secured Against Property – The loan is secured against the property you're buying or one you already own.
- Short-Term Finance – Typically repaid within 3-18 months once your exit strategy is complete (e.g., property sale, mortgage approval, or refinancing).
- Interest Options – Interest can be paid monthly or rolled up and paid at the end of the loan term.
- Loan-to-Value (LTV) – Lenders typically offer up to 75% LTV, though this varies based on the property and your circumstances.
Why Choose Us for Bridging Loans?
- Specialist Advisors – We connect you with independent advisors who specialize in bridging finance and understand the market inside out.
- Access to Specialist Lenders – Our advisors work with a wide range of bridging loan providers, from high street banks to specialist lenders.
- Fast Turnaround – Bridging loans are all about speed. Our advisors prioritize quick applications and approvals to meet tight deadlines.
- Tailored Solutions – Whether you need a small loan for a quick purchase or a large facility for development, we'll find the right solution.
- Clear Advice – Bridging finance can be complex. Our advisors explain everything in plain English, including costs, risks, and exit strategies.
- No Spam, No Selling Your Details – We only pass your information to the advisor best suited to help with your bridging loan needs.
Frequently Asked Questions
Do you provide bridging loan advice?
No, we're an introducer service. We connect you with independent, specialist advisors who provide expert advice on bridging finance tailored to your circumstances.
What happens to my details?
We only share your information with the advisor who's the best fit for your needs. We don't sell your data or pass it to multiple companies. No spam, just the right solution.
How quickly can I get a bridging loan?
Bridging loans can be arranged in as little as 7-14 days, depending on the complexity of the case and the lender. Your advisor will work to meet your deadline.
How much can I borrow?
Bridging loans typically range from £25,000 to several million pounds, depending on the property value and your circumstances. Lenders usually offer up to 75% loan-to-value (LTV).
What are the interest rates?
Bridging loan interest rates are higher than traditional mortgages due to the short-term nature and speed of the loan. Rates typically range from 0.5% to 1.5% per month, depending on the lender, LTV, and your exit strategy.
What is an exit strategy?
An exit strategy is your plan for repaying the bridging loan—for example, selling a property, securing a mortgage, or refinancing. Lenders need to see a clear, realistic exit strategy before approving your loan.
Can I get a bridging loan with bad credit?
Yes. Bridging lenders focus more on the property value and your exit strategy than your credit history. Specialist lenders can work with adverse credit, though rates may be higher.
What are the risks of a bridging loan?
Bridging loans are secured against property, so if you can't repay the loan, the lender can repossess and sell the property. It's essential to have a clear exit strategy and understand the costs involved. Your advisor will help you assess the risks.
Can I use a bridging loan for a residential property?
Yes, bridging loans can be used for residential, commercial, or mixed-use properties. They're commonly used for residential purchases, especially at auction or when speed is essential.
How do I get started?
Just get in touch. Tell us about your bridging loan needs, and we'll connect you with a specialist advisor who can help. It's that simple.
Important Information: We are an introducer company and do not provide financial advice. Our role is to understand your needs and refer you to the appropriate financial services provider who is best suited to help with your specific enquiry. By submitting your details, you agree that we may pass your information to the relevant partner company who can assist you. We will only share your details with providers who are the right fit for your requirements. Your information will not be sold or used for spam—we are committed to finding you the correct solution for your needs.