Bridge Loan Service
There are many reason why you may require a bridge loan. It may be that you are looking to purchase a new property and have not yet sold your existing home or you are looking to purchasing an investment property using the equity in your current home. Other reasons might include renovations or extensions that require short term finance.
Special features of what we offer include:
- Bridge Loans from £50,000 to £25 million
- Residential and Commercial Bridge Loans
- Term - From 1 to 36 months
- Interest roll up schemes
- Bridging loans for individuals, limited companies, sole traders and partnerships
- Whole of market service - we work directly with UK bridging lenders
- Lowest Bridging Loan Rates - Access to leading bridging loan offers
- Fast turnaround - speak to us today if you need to move quickly. 5 to 7 days possible.
To investigate your bridging loan interest rate options.
Call our team on 0117 313 6058 or fill in our call back form.
Bridging finance is being used across the UK with greater frequency. More people are starting to recognise how they can apply short term loans in funding residential and commercial property transactions.
This increasing popularity is being driven by increasing use of bridging loans for residential and commercial property transactions, auction purchases and renovation and building development projects.
Increased confidence in the housing market has been a major driver of this growth with investment in building projects and buy-to-let schemes fuelling demand, as they provide investors with the opportunity to renovate and refurbish properties that could not have been financed through standard mortgage finance.
Bridging finance has become more popular in the last few years with an increasing number of people taking advantage of the flexibility that it provides both in residential and commercial funding.
What is a bridging loan?
In simple terms a bridging loan provides fast and flexible finance when time is of the essence providing borrowers with a fast cash injection which would otherwise not be available through more traditional finance routes.
There are 2 types of bridging loans:
(a) Closed bridge - The borrower has a set date when the loan will be repaid e.g. the borrower has already exchanged to sell a property and the completion date has been fixed. The sale of that property will repay the bridging loan.
(b) Open bridge - The borrower sets out a proposed exit plan to repay their loan but there is fixed deadline at outset. There will be a clear cut-off point that the loan has to be repaid by. A bridging loan is a short term loan (usually 12 months or less) although some lenders may provide finance for longer than 12 months that can be used by individuals and businesses for any purpose until more long term funding can be arranged, or they sell the property.
What are the main uses of bridging loans?
Bridging finance can be used in residential and commercial property transactions. Users of bridging finance range from home buyers, home builders, barn converters, landlords, property developers and investors.
Whether buying a property, building a property or raising funds for a refurbishment project, short term lending can be a viable option.
Bridging finance is also sometimes used by businesses in need of short-term funding e.g. to raise capital, meeting a business obligation or settling tax liabilities, it can help provide support in an emergency situation or allow a firm to take advantage of a business opportunity.
How do bridging loans work?
With a bridging loan what you get is quick finance. With a mortgage it could take two months before you can drawdown funds. With a bridging loan you could have finance in 5 to 7 days. In some cases quicker. In exceptionally time constrained situations bridging loans have been known to complete in 24 hours.
The bridging loans process
The bridging loan process is typically as follows:
We will establish with you what you are trying to achieve.
Once it is clear that a bridging loan is the right type of finance required we will research the lender market using our in-house bridging finance sourcing system for bridging finance rates.
A suitable bridge lender will be selected and will be provided with a summary of your situation, your reasons for wanting a bridging loan, the security you are providing and repayment strategy.
The lender will be given evidence (if applicable) of the new property purchase and proof of the price to be paid.
The bridge lender will issue an offer letter outlining the terms of the proposed finance and what is needed to obtain the finance.
Assuming you are happy to proceed the lender will instruct a property valuer to provide a valuation report. All documents will be then sent to your solicitor. Your solicitor will explain the terms and conditions of the loan to you.
On receipt of signed documentation funds will be released to the solicitor for legal completion.
The bridge loan funds will be then sent to your bank account. This loan process usually takes 7 days to a month. Sometimes, this can be reduced to hours, depending on the case and the set of circumstances involved, and crucially, what evidences the client has available. Similarly it could take longer in the case of a complex development loan which requires a number of conditions to be discharged by the Local Planning Authority.
Once you receive the bridging finance you will be expected to repay the loan back by the end of the set term. Interest payments can be made in monthly instalments or can be rolled up in the final payment.