Short term finance for (almost) any purpose
Bridging loans are a popular way to raise money quickly and easily for a variety of purposes, including buying a new property before selling your old one, carrying out property upgrades, and even raising working capital for a business.
Our specialist brokers work with numerous lenders, who offer competitive rates and fast decisions.
A bridging loan could be your solution. Get the money you need quickly, with flexible terms.
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What is a Bridging Loan?
A bridging loan is like a financial stepping stone. It’s a short-term loan that gives you fast access to the money you need, usually within days. This loan is secured against a property you own or are buying, but other assets can be used too.
Think of it as a bridge that helps you cross from one financial situation to another.
What can a bridging loan be used for?
- Buying a new property before your old one sells: A bridging loan helps to fund the cost of the new property until you receive the funds from selling your existing one.
- Renovating a property: You can use a bridging loan to fund renovations, then repay it with a mortgage or by selling the improved property.
- Grabbing a property bargain at auction: Bridging loan auction finance can give you the swift purchasing power needed to win at auction, before you secure longer-term finance.
- Dealing with unexpected expenses: Whether it’s an unexpected bill or a business opportunity that can’t wait, a bridging loan can provide the funds you need.
Bridging loans aren’t for everyone, and they come with higher interest rates than traditional loans. However, their speed and flexibility make them a valuable option for certain situations.
If you’re facing a financial gap and need a quick solution, a bridging loan could be the answer.
Why Choose a Bridging Loan?
A bridging loan offers a speedy, flexible solution when you need funds fast.
It’s a temporary loan, secured against a property or other assets, designed to ‘bridge’ the gap between buying a property and selling an existing one, or to finance other time-sensitive needs.
Benefits of a Bridging Loan:
- Quick Access to Funds: Get the cash you need within days, not weeks or months.
- Flexibility: Bridging loans can be used for various purposes, from buying property at auction or before your current home sells, to renovating your property, funding business ventures, or covering unexpected costs.
- No Monthly Repayments: In most cases, you only repay the loan and interest at the end of the term.
- Tailored Solutions: Lenders can customise bridging loans to suit your specific circumstances and financial goals.
They are available as a first charge, second charge and even third charge!
If you need a fast, flexible financing solution, a bridging loan could be the answer.
Let’s talk about your needs and see if a bridging loan is right for you.
How Does a Bridging Loan Work?
Bridging loans are often misunderstood but are much simpler than you might think!
Here’s the basic idea:
- You have a financial goal: Maybe you want to buy a property at auction, renovate your home, or need quick cash for your business.
- You approach a broker: You discuss your needs and the broker assesses your situation.
- You agree on the loan terms: This includes the amount you’ll borrow, the interest rate, and the repayment period, which is usually a few weeks to 24 months.
- The loan is secured: The lender secures the loan against a property or another asset, which acts as a safety net for them.
- You receive the funds: Once everything is agreed upon, the money is quickly transferred to you.
- You repay the loan: This is usually done in one lump sum at the end of the loan term, often when you sell a property or refinance.
It’s important to note that bridging loans do have higher interest rates than traditional loans due to their short-term nature and the associated risks. However, they are extremely flexible and can be a valuable tool when used strategically and with a clear exit plan.
You need to be aware of whether your loan would be classed as regulated or unregulated. Regulated loans will have FCA protection but take longer to arrange and are offered by fewer lenders.
Read more: Are bridging loans regulated by the FCA?
Think a bridging loan could help you achieve your goals? Let’s talk!
How much can you borrow?
Bridge lenders generally go up to 80% LTV (loan to value).
This 80% is based on their assessment of the property value, not yours. It will be influenced by the property being used as the security and your exit strategy.
So, if the property is valued at £400,000 the maximum loan will be £320,000. (400,000 x 80%).
This 80% figure includes any other secured borrowing on the house.
Using the same example, if you already have a mortgage of £120,000 the maximum bridging loan would then be £200,000. (320,000-120,000).
Are 100% loans available?
In certain circumstances lenders are able to give you 100% of the value of a property.
To do this they need to secure the loan against a second or third property, to give them additional security.
Read more:
Bridging Loans for House Purchase
Need to act fast on your dream home, even before your current property is sold? Or maybe there’s an investment property opportunity.
A bridging loan could be the solution you need. These short-term loans cover the financial gap between buying a new house and selling your existing one (or getting a long-term mortgage).
How Bridging Loans Help with House Purchases:
- Beat the competition: Secure your dream property before it’s snapped up by another buyer.
- Break free from property chains: Avoid delays and complications by purchasing your new home without waiting for your sale to complete.
- Quick access to funds: Bridging loans are processed quickly, so you can move forward with your purchase without delay.
- Flexibility: Tailor your bridging loan to suit your specific needs and timeframe.
We’re Here to Help You:
Buying property can often be stressful, but we’re here to make it easier. We’ll help you find the right bridging loan for your situation, guide you through the application process, and ensure you get the best possible deal.
Don’t miss out on your perfect property – let us help you bridge the gap with a short-term finance solution.
Related pages:
Short-Term Bridging Loans
Short-term bridging loans are designed to provide quick financial relief, typically lasting between 3 and 24 months. Their short duration makes them ideal for situations where you need access to funds fast but have a clear plan for repayment.
Also, as they are more expensive than a standard mortgage you will want to repay it as soon as you can.
The Power of a Short-Term Loan:
- Swift Access to Funds: Secure the money you need within days, allowing you to act quickly on time-sensitive opportunities.
- Cost-Effective: With a shorter loan term, you accrue less interest overall compared to longer-term loans, making it a more cost-effective option.
- Focus on Your Exit Strategy: Short-term bridging loans encourage you to focus on your repayment plan, whether it’s selling a property, refinancing, or receiving a payout. This helps ensure a smooth financial transition and minimises risk.
- Flexibility: Use the funds for a wide range of purposes, from property purchases and refurbishments to bridging cash flow gaps in your business.
- Property Type: Lenders are willing to consider almost any type of property, so don’t be shy. Residential, commercial and semi-commercial are all acceptable.
If speed is a priority then we can offer 75% LTV bridging loans, and also 80% LTV bridging loans in some circumstances.
If you have a clear repayment strategy and need a quick financial boost, a short-term bridging loan could be the perfect solution. We can help you create a tailored repayment plan that aligns with your goals and timeline.
Let’s discuss your needs and find the short-term bridging loan that best suits your situation.
How Long Does it Take to Arrange a Bridging Loan?
Time is of the essence when you need a bridging loan. That’s why we prioritise speed and efficiency, aiming to get your funds to you as quickly as possible.
While the exact timeframe can vary depending on your circumstances, here’s a general idea of what to expect:
Initial Assessment: We can typically assess your eligibility and provide a decision in principle within a few hours.
Valuation and Legal Checks: If you’re using a property as security, a valuation will need to be carried out. Legal checks and paperwork will also be completed. This process usually takes a few days to a week.
Loan Offer and Completion: Once all checks are complete, you’ll receive a formal loan offer. Upon acceptance, the funds can be released within a few days.
In many cases, we can arrange a bridging loan within 2 weeks, but it can sometimes be even faster. We understand the urgency often involved with bridging loans, and we’ll work diligently to ensure you receive the funds you need as quickly as possible.
Read more: How Quickly Can You Get a Bridging Loan?
Contact us today for a swift assessment of your bridging loan needs.
Open or closed?
Bridging loans are available as open or closed.
If you have a specific date for repaying the loan, a closed bridging loan may be the best option. However, if you need more flexibility and don’t have a fixed repayment date in mind, an open bridging loan could be the answer.
Read more: What is The Difference Between Open and Closed Bridging Loans?
Closed Bridging Loans
This type of loan has a fixed repayment date, typically tied to a specific event, such as the completion date for a property sale.
Closed bridging loans are ideal if you have a well-defined timeline and know exactly when you’ll be able to repay the loan. This certainty can lead to lower interest rates compared to open bridging loans.
Open Bridging Loans
These do not have a fixed repayment date, offering more flexibility. Although both loan types will be set up over a fixed number of months.
Open bridging loans are suitable if you’re unsure of your exact repayment timeline, but have a detailed exit strategy, such as refinancing or selling another asset. While they offer more flexibility, open bridging loans are slightly more expensive.
Options for bad credit
Anyone who has past credit issues will find it more difficult to borrow money.
Some mortgage lenders only accept clean credit histories, limiting the available funding resources.
While bridging lenders do look at your credit history, they take more of a pragmatic view when considering your application.
The quality of the security, the loan to value, the term, all come in to play.
Having an experienced finance broker helping you will ensure your application gets presented in the best possible way.
explore bad credit bridging loansLoans with bad credit
Bridging loans with bad credit are widely available, but the deal has to be right for the lender.
Non-status lenders
There are also a few lenders that can work on a non-status basis, without credit checks.
