You can borrow a minimum of £10,000 for your bridging loan with no maximum amount capping your loan. The exact amount you can borrow depends on the property value you are securing the loan for, a quote will then be provided based on the loan to value (LTV) which ranges from 50-80% for LTV interest rates.

A closed bridge loan is very similar to a normal bridging loan, the only difference being that the lender will know how & when you will repay the loan. If you know you can repay your bridging loan by a certain date from the sale of a property or other means, then a closed bridging loan is perfect for you.

An open bridge loan has no fixed repayment date. There is no set exit date for an open bridging loan either as you can only guess how long the loan will be needed. This is perfect for someone waiting for a buyer or sale, the loan is then repaid when funds become available after the sale of a property.

Bridging loans are highly flexible with the type of security they accept from a borrower. Examples of security that your bridging loan can be secured against include residential property, commercial property, building plots, and land. We are also flexible about the type of construction and condition of the property.

As the loan period of bridging loans are short-term, you can pay interest in 3 ways:

Pay Interest Monthly – it’s not added to your bridging finance balance.

Rolled up – pay all interest in full at the end of your loan.

Retained – borrow the interest for an agreed period and pay it all back at the end of the loan.

We arrange bridging loans as first or second charge. When you take out a bridging loan, a charge is placed on the property you’re using as security which prioritises which lenders are repaid first if you fail to repay your loan – a first charge loan is paid first before a second charge loan.

If you own your property or you’re taking out a bridging loan to repay your mortgage, the bridging loan would be first charge, so your bridging loan would be repaid first.

If you already have a loan against the property, such as a mortgage, the bridging loan will be second charge, so if you fail with repayments, your mortgage would be paid off first.

Most frequent questions and answers

A bridging loan is a short-term finance solution used to bridge a gap in your finances until long-term financing or alternative funds are put in place. Bridging can be arranged faster than a normal mortgage and secured on property not eligible for traditional finance. Bridging loans can be used for a variety of purposes, from auction purchases to chain breaks.
Bridging loans have higher interest rates than other forms of borrowing because they are a short-term option. Interest rates vary from around 0.4% to 1.5% per month and depend on your circumstances and requirements. There are also additional costs to consider depending on the lender, including an arrangement fee, admin fee, legal fee, valuation fee, and exit fee.
Bridging is often the best borrowing option, but there may be a better alternative based on your circumstances. Depending on what you want to use bridging finance for, a few alternatives include buy-to-let mortgages, asset refinancing, development finance, secured loans, commercial mortgages, and refurbishment loans.
Bridging loans are quick to arrange and offer a faster turnaround than traditional mortgages. Although it is possible to have your loan within 48-72 hours, it is more likely that your application will be approved within 24-48 hours, and you can then expect to have the funds released in 2-4 weeks.
How much deposit you need for a bridging loan depends on the amount you want to borrow, the value of the property you want to purchase, and the loan-to-value (LTV). A typical bridging loan with a 75% LTV will require a 25% deposit. If you’re buying a £100,000 property with a £10,000 deposit, you’ll need a 90% LTV mortgage.
Each bridging lender has their own set of criteria that applicants must meet to qualify for finance. One of the key lending criteria required by bridging lenders is that you must have collateral in the form of property that will be used to secure the loan against. You must also have a viable exit route to clearly set out how the loan will be paid back.

Bridging loans usually have a max LTV of 75%. LTV 100% bridging loans are uncommon as they are a greater risk to lenders. However, some lenders offer 100% bridging loans under specific circumstances. There are 2 key ways to get a 100% bridging loan – by using another asset to provide extra security, or buying undervalue.

The exit route sets out how the bridging loan will be repaid to the lender. The most popular ways to pay back a bridging loan are through selling the property or refinancing to a mortgage. Other ways to repay the bridging loan include using money due to be received, a policy reaching maturity, or with inheritance.
You can repay interest in 3 ways. You can either pay interest monthly in which it’s not added to your bridging finance balance, choose rolled-up interest where you pay all interest in full at the end of your loan, or pay retained interest and borrow the interest for an agreed period then pay it back at the end of the loan.
You can still get a bridging loan even if you have bad credit. All loan applications are judged on their own merits, with more flexibility with regards to poor credit history, proof of income, and credit arrears. Most lenders have facilities available for those with CCJs, defaults, IVAs, bankruptcy, and repossessions.
A bridging loan calculator is a tool to help you discover the loan rates, interest fees, and repayment costs you can expect when taking out a bridging loan. Simply enter how much you want to borrow, how long you need the loan to last, and the loan amount in relation to the value of property or security (LTV).
Bridging loans can be used for any legal purpose. Whether you’re closing a chain, buying to let, buying before selling, buying to renovate, raising working capital, purchasing auction property, purchasing land, or building a property, bridging lenders offer a variety of bridging loans to suit all situations.
To qualify for a bridging loan, criteria is flexible with regards to credit score, condition of property used as security, and loan use. The most important factors a lender will consider when determining whether you qualify for a loan are the value of the security property and the feasibility of the exit route that sets out how the loan will be repaid.

The amount of money you can borrow through bridging will depend on the value of the property or land you are securing a loan against. Often there are no upper limits on the amount of money you can borrow. Typically, lenders will provide bridging loans from around £10,000 with no maximum value that you can borrow.

Bridging loans have flexible criteria when it comes to proof of income. All loan applications are judged on their own merits, with more flexibility with regards to credit history and income evidence. Most lenders don’t require proof of income when applying for a bridging loan.
Bridging loans are a short-term loan, which means they are designed to be repaid in full over a short period of time. So, most bridging lenders provide loans from around 1 day up to a maximum of 18 months, whilst some offer up to 36 months.
Bridging loans typically have higher interest rates than standard loans. This is because they are intended as a short-term finance option. Interest rates on bridging loans can vary from around 0.4% to 1.5% per month, depending on the lender you choose.
Applicants must be a minimum age of 18 years old to apply for a bridging loan. Some lenders also impose upper age limits. The applicant needs to be completely aware of what they are doing, unless there is a power of attorney in place.
To be eligible for bridging finance, you must live in the UK, be at least 18 years old, be a private individual, partnership or limited company, want to borrow at least £10,000, have property used to secure the loan against, and have a defined exit route that details how you will pay back the loan.
A closed bridging loan is a loan with a fixed repayment date. This type of loan has a guaranteed exit date when the loan must be repaid by. It is usually based on when you know you’ll have funds available to pay back what you owe.

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