Bridging loan

Bridging loans for any purpose

We can secure your bridging loan with expert knowledge and long-standing lender relationships.

  • Day one decision in principle
  • Best rates on the market
  • Up to 75% LTV (up to 100% with additional security, i.e. another property)
  • Bad credit acceptable

What is a Bridging Loan?

Bridging finance loans are short term finance to ‘bridge’ the gap until the main finance is available, such as a traditional mortgage or the property is sold, following say a renovation. The purposes of a bridge can be:

A typical bridging loan usually runs for 12 months, we will need you to demonstrate your ability to repay the loan at this point. (i.e. sale of the property, re-mortgage to a traditional mortgage or other capital)

Bridging Loan FAQ

Bridging finance loans are short term finance to ‘bridge’ the gap until the main finance is available, such as a traditional mortgage or the property is sold, following say a renovation.

A bridging loan is multipurpose and has a variety of uses, with lending based on the property, the borrowers experience and plan for the property, it means lenders don’t tend to look at a customer’s income and credit profile.  Although it’s important to note, if a new traditional mortgage is required at the end of the bridging term, that mortgage will be subject to full lender credit checks.

The nature of a bridging loan means you need speed and efficiency in any application made.

Once you have submitted an enquiry, we will get an initial decision to you within 24 hours and contact you at your earliest convenience to progress your application. Speak to us today

Bridging loans can be regulated or unregulated depending on the use of the property, unregulated bridging means it’s not governed by the Financial Conduct Authority (FCA).  It’s always important that you are made aware of the full terms, all fees, charges and conditions of the loan, whether its regulated or not.

We have access to both regulated and unregulated bridging loans.

As an example, you may have found your dream home, but need to sell your current one before purchasing it.  There could be lots of interest in the home that you want to buy. A bridging loan could allow you to buy the new property, before selling your current one.  You would market your current property as normal and once it sold repaid the bridging loan. (note this normally needs to be within 12 months) 

As a further example, bridging loans could be used when you are:

  • looking to buy a property for investment purposes,
  • such as a buy to let property,
  • commercial property purchase
  • or even a refurb and sell project. 

This can provide the turn-around speed and flexibility to work within your requirements and timeframes.

In short, anyone can get a bridging loan. We will make sure the product is suitable for your needs and source the solution through specialist lenders.

We source bridging loan products for Limited companies, Individuals, Sole Traders, Partnerships and most others in-between. A bridging loan can be a brilliant solution to provide you with a short-term solution to achieve your goal.

Lenders will be looking at the following:

  • The property you want to buy
  • The amount you want to borrow against the properties value
  • Your plan for the property
  • Your experience, if you are looking to renovate and sell
  • Your exit plan (how you will repay the loan within the 12 month term, such as a traditional mortgage, sale of property or other capital)

If your circumstances require alternative and more specialist finance, then a bridging loan could be exactly what you are looking for.

There are always considerations to be made before taking out a product which is why we can provide specialist services and insight to select the right product and to process an application quickly.

  • Securing a property before completing the sale of your existing property
  • Broken sale chains – bridging the gap between purchases
  • Auction purchases – quick completion timescales
  • Renovation – a traditional mortgage may not be available until the works are complete.
  • Below market value – enabling you to possibly take advantage of the open market value of the property
  • Un-mortgageable properties, for example if there’s no kitchen or bathroom
  • Refurbishment projects to sell or let
  • Change of use – if changing the purpose of a building

The bridge loan term can be anywhere from 1 month up to (usually) a maximum of 12 months. There is not usually a maximum loan amount, as they are assessed based on the proposed usage, exit method and criteria on a case by case basis.

A bridge loan can be arranged quickly which is why it is used when finance needs to be attained in a short time scale. The lender of the bridge loan will carry out their own checks to ensure the applicant meets the lending criteria.

Due to the nature of bridge loan lenders typically being smaller and more flexible, the time scales could be substantially shorter than a typical mortgage or loan product.

Due to the short-term nature of bridge finance, it will always be more expensive than a traditional mortgage or other standard lending product.

The trade-off is that the finance can be raised quickly on a wider range of situations and due to its short-term nature facilitates purchases, renovations or developments that allow other capital to be released elsewhere.

Some of the standard fees you would expect to pay as a part of any bridge loan deal would be;

A Lender’s arrangement fee

A fee is commonly charged by a lender for providing the loan facility and is typically two percent (2%) of the loan amount. In some instances, it can be rolled within the loan depending on client or lender requirements.

An Exit fee

This fee may be charged by the lender when the loan is repaid. When charged, it is usually around one month’s worth of interest regardless of whether the loan has run to its full term or was completed early.

A Surveyor’s fee

A fee will usually be payable to the firm hired to survey the property which is usually required as a part of the finance proposition process.

Legal fees

As with a standard mortgage, bridge finance must be processed with all the usual legal requirements stipulated by regulations. In some cases, lenders have in-house legal professionals which may apply these costs into the lender’s arrangement fees.

For free initial advice from our qualified mortgage brokers about a bridging loan, call 0800 197 0504 or click below to request a callback at a time to suit you.

Case Study

Customer story

Fast bridging finance when it’s needed most to save a £21,000 fee!

Clever Lending can provide short-term finance for almost any scenario, especially when not meeting a deadline would have cost £21,000.

We helped one customer to secure a £420,000 bridging loan in just 9 days!

After working closely with the lender and solicitor, the customer was able to pay off his existing bridge and save having to pay a 5% default fee.

We also achieved a monthly interest rate of 0.65%

No obligation advice on Bridging Loan

Why use a mortgage broker for a bridging loan?

Most of our customers have had some form of credit difficulties, from low credit score, missed payments or declined a mortgage elsewhere.

6 Great reasons to choose Clever Mortgages

Multiple Lending Options

Every member of our team are experts in their field and know how to find the right solutions for customers whatever the circumstances.

Over 100 lenders

The number and quality of lenders we work with means we have access to a diverse spectrum of best-rate deals. The lenders we use means we have all areas covered – even for those in particularly niche circumstances.

Not every case is the same

As each customer’s situation is unique, we take the time to understand your situation, and we carefully assess your goals and how we’ll make sure the mortgage we get helps you to achieve them.

Access To Exclusive Rates

The relationship we have with our lenders means we have access to products and deals that simply aren’t available to customers going direct. This is true particularly for those in adverse credit situations.

Offering the best support

We know that the specialist market  can be very stressful, so we do our upmost to make the process as hassle-free as possible. We’re there for you at every step, always keeping you in the loop.

Excellent Reviews

We’re proud of our long-standing 5 Star Rating on Trustpilot, and love all the positive feedback we get from customers every day. We feel privileged to help people get a great deal with far less stress.

Why use a mortgage broker?

Mortgage brokers can help you find the best deals on the market – not just from one lender. With a broker you’ll get:

  • Valuable knowledge, through years of experience helping customers to find mortgages and commercial deals
  • An improved chance at finding a solutions – outside the box thinking.
  • Help with the application process, as usually just one application can be used across various lenders

What should I do next?

  • You can call us  today on 0800 197 0504  complete the form
  • One of our experts will give you a call to find out more about your situation
    We have experts in commercial and residential lending, who focus solely on helping customers save money
  • We do all the hard work for you
    We search the market for the trusted lender that’s right for you
  • Our expert will get back in touch
    We can guide you every step of the way, and we’ll always keep you up-to-date with progress
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