Specialist bridging loan broker
Subject to criteria we can quickly arrange bridging loans from 0.59% per month. We have access to a wide range of commercial & buy to let bridging lenders.
- Access to leading rates from 0.59% a month
- Borrow from £25,000 to £25,000,000
- No minimum term and no exit penalties
- No minimum income necessary
- Borrow up to 75% of the property value
- Available to individuals, companies, trusts and partnerships
- Uninhabitable properties accepted
- Switch to long-term finance for just a 0.95% fee
Bridging loan advice
Many brokers overlook a key aspect of advice which is vital when taking out a bridging loan, and that is the exit strategy. We will provide help and advice at every step of your bridging loan application.
What is a bridging loan and how does it work?
A bridging loan is a short term financial solution; it should be put in place with plans for a smooth transition to long term finance or sale.
Get a great deal on a bridging loan
We offer a comprehensive range of mortgages from across the market which means that we are not tied to any one lender, rather we search wide range of lenders and products to find the one which best matches your requirements and that offers you the best possible deal.
Bridging loans mean quick access to funds
A Bridging loan is a product specifically designed to enable fast access to funds. In addition, one of the many benefits of using our service to arrange a bridging loan is that, as an established broker, we have built relationships with lenders which afford us preferential service and fast turnaround times.
Upper age limits for mature borrowers
We can source bridging loans for borrowers who are up to 85 years old which means those with the greatest investment experience can remain active in their business dealings.
Decision in principle often within 2 hours
Call our specialist advisers on the telephone numbers at the top of this page or complete our quote request form to get started with a quote. We will get in touch with you as quickly as possible and once we have the appropriate details can commonly get a decision in principle from a lender within 2 hours.
Purposes of a bridging loan
Bridging loans are available to individuals, partnerships, companies and trusts that need to access funds quickly for any legal purpose. Commonly this includes purchasing uninhabitable property, buying property at auction, land for development, funding modifications to property, purchasing stock, machinery or IT equipment but could also be used for other reasons such as settling an unexpected bill when there is a gap in cash flow.
If you want to renovate property
Renovation finance can provide funding for development and refurbishment projects, however big or small. It may be difficult to get a conventional mortgage for property that is deemed unfit for occupation, (i.e. missing a bathroom, kitchen or plumbing system). Renovation finance can cover the costs of the sale and refurbishment, letting you do it up properly. You can then arrange a mortgage as a long-term solution.
If you need to cover a cash shortfall
Take out bridging finance to fund any legal purpose. This could include car purchases, VAT bills, deposits, holidays or your children’s education. You can borrow from £25,000 to £25,000,000 quickly and efficiently to cover any cash shortfall you may have.
If you want to buy auction property for buy to let
A buy to let bridging loan could cover the cost of an auction property in time for completion. As there is only a 28-day time frame to complete the sale, securing a mortgage in time can be tricky.
If you want to improve your business
You can borrow up to £25 million to invest in new commercial property, update stock or help with cash flow in your business. A commercial bridging loan can provide funding for a range of properties, like offices, restaurants, B&Bs and pubs. As there is often not much time to secure deals and investments, we can arrange bridging loans quickly so you can get the cash you need in time.
What is involved in a bridging loan application?
The first step will be to discuss your requirements with us. We will need details of the property or properties you will offer as security, the purpose of the loan and your exit strategy.
After this initial discussion, you will receive a free quote based on your circumstances and requirements. Once we have matched you with a lender, we will provide you with an in-depth illustration of the loan you have been offered. If you are happy to proceed with the loan, sign the form and return it to us.
The lender will then arrange a valuation; once this has completed, they will pass the report on to their conveyancer (property solicitor) to complete the legal work. You may need to instruct your own solicitor at this stage.
Completition & Payout
After this process has concluded, the lender will release the bridging funds to your solicitor, at which point you can access it immediately.
Finance can be arraned quickly
The length of time that an application takes varies widely, though it can take as little as seven to ten days.
The loan to value (LTV) ratio of your bridging loan works in much the same manner as that of a traditional residential or commercial mortgage; you forward a proportion of the cash up-front, and the bridging lender lends you the rest. For instance, a 70% LTV loan on a £200,000 buy to let property would require a 30% deposit of £60,000.
An alternative way to raise the deposit would be to offer additional security; for instance, the equity in another property or properties. It is possible to secure a 100% LTV loan in this manner.
An example: Let’s say you have a commercial property worth £1.5 million and an outstanding commercial mortgage of £600,000 on the property. With a first charge commercial bridging loan at 50% LTV, you could borrow up to £150,000 against the property without having to put down a cash deposit:
- 50% of £1.5 million – £750,000
- Existing first charge mortgage to be repaid – £600,000
- Remaining loan amount – £150,000
Alternatively, you could borrow on a second charge basis without repaying the first charge mortgage. The maximum LTV across more than one mortgage or loan is 65%, meaning that you you could borrow up to £375,000:
- 65% of £1.5 million – £975,000
- Existing first charge mortgage to remain in place – £600,000
- Remaining loan amount – £375,000
This arrangement might be beneficial if you are locked into your first mortgage and will incur charges or higher rates by repaying it early. However, the interest rates on a second charge loan would likely be far higher.
Borrowing a bridging loan at market value or restricted market value
It may also be possible to borrow more than the maximum LTV without the need for additional security if the bridging lender bases their underwriting on a valuation other than the purchase cost. This would be either a restricted or unrestricted ‘market value’.
The market value, also called the ‘open market value’ or ‘fair value’, refers to the best price one can realistically expect from an ‘arms-length transaction’ (wherein the buyer and seller are independent and unrelated). There are no restrictions or barriers to entry; it is assumed that sufficient time will have been given to market the property and achieve maximum interest and that both parties will be willing and acting without compulsion. Open market valuations are an inexact science, but will typically be higher than the purchase value.
Surveyors can also provide market valuations restricted to a 90- or 180-day marketing period. These valuations assume similar transaction conditions, but apply shorter hypothetical time frames in which to market the property and complete the resale.
As you might gather, the difference between 90- and 180-day values can be substantial (though less so in a ‘seller’s market’). It is important to know which value – purchase, market, 180-day or 90-day – your lender prefers to work to, and also to bear in mind that even a bridging lender who traditionally uses the 180-day value may refuse to fund a deal if the 90-day value is too low. It is advisable to ask your adviser what 90-day value is needed, if any, and attempt to stick to it.
For help searching the market for the best bridging loan for your circumstances and for expert advice with your investment, call us on the telephone numbers above or complete a bridging loan enquiry.