On this page:
Bridging Loan calculator
Bridging Loans at a glance
Frequently Asked Questions
Case Study
Bridging Loans including calculator
Calculate your Bridging Loan
Please note that we base our calculations on an interest rate of 1% per month. We have rates from 0.77% per month but in our experience the criteria for these deals may be harder to satisfy. We feel 1% offers a realistic quotation. We will of course source you the best interest rate available.
The calculator figures are only an estimate and can vary depending on the lender and your personal circumstances. We would recommend that you speak with one of our advisers to get a personalised quotation, to help you make an informed decision, that is right for you.
Our bridging loans service provides:
- Same day decision in principle available
- Typically 3 weeks to receive funding (fast track bridging available, currently 7 working days- call for information)
- Market leading bridging loans from £50,000 to £100 Million plus
- Monthly interest rates from 0.77 % pm
- Terms up to 24 months
- LTVs up to 100% (subject to adequate securities)
- Bridging in Northern Ireland
- Chain breaking
- Interest roll up options
- Re-bridge loan options
- Residential bridging downsizing and upsizing finance for UK and foreign property purchase, chain breaking, buy to let, HMO, investment and commercial properties considered
- Light refurbishment loans (If currently uninhabitable, or under permitted development rules, require internal refurbishment)
- Heavy refurbishment loans (Change of use, Extensions, basement digs, loft conversions, commercial to residential, barn conversions)
- Development bridging loan solutions
- Bridging loans for business purposes (Pay HMRC tax bill, purchasing land or new premises, deposit for new purchase, property portfolio purchase, business growth)
- We can help if you are a UK expat needing short term finance to secure a residential or investment property back in the UK. We can help with bridging loans for non UK citizens and we can help if you are looking to fund investment property
- Alternative non bricks and mortar asset backed bridging loans considered (£1m + ) e.g. pension, investment portfolios, jewellery, fine art, classic cars
- We provide a friendly, professional service to help you get the money you need at the best available rates
- We can also get bridging abroad, please call with location
Frequently Asked Questions
What is a Bridging loan?
Bridging loans are a way of borrowing money in the short term. Unlike mortgages, bridging loans can be arranged quickly, with funds released in as little as 3-7 days. Bridging loans are a secured loan, usually against a property or properties.
What can a Bridging loan be used for?
A bridging loan can be used to break a residential chain. It means you can buy your new home, even if your current home has not sold yet, or the chain is being held up, or has collapsed.
It can be used to purchase an auction property, Generally, you only have 30 days after the auction to pay in full.
It can be used for developments and refurbishments. Funds can be made available to do the required work.
If you are buying land, a bridging loan could cover the cost of building work.
If a property is unmortgageable. High street lenders will not mortgage a property that is in bad condition, for example, it is uninhabitable in its current state.
How does a Bridging loan work?
You can typically borrow between £50,000 and £100 million + with a bridging loan. The maximum loan, including interest, is normally limited to 75% loan to value. The loan is then secured on the property (or it can be across multiple properties or other assets).
Can I get a Bridging loan with another person or as a Ltd company?
Yes.
Do I need experience?
Not always, Lenders will look at a number of factors.
Can I get a Bridging loan as a first time buyer?
It may be possible depending on your circumstances.
What are the advantages and disadvantages of a Bridging loan over a standard Mortgage?
The advantages are:
Speed, the money could be available to you in as little as 3-7 days.
Loan size, potentially you could borrow more as it can be secured on a number of properties or assets.
Flexibility, you can choose the length (typically 3-24 months) and how you pay the interest (either monthly or retained to the end)
Acceptance, you may not meet standard mortgage criteria. For example if the condition of the property makes it uninhabitable. Or your age or income may not meet lender criteria.
The disadvantages are:
Loss of assets if you can’t repay the loan. You risk losing the secured asset(s).
Higher interest rates, Comparatively, they are higher.
Fees, these are generally added to the loan.
How much does a Bridging loan cost?
Typically, the costs include:
2% lender fee, deducted from the loan
1% broker fee, deducted from the loan
Upfront broker fee
Deposit
Valuation fee, these can vary
Solicitor/Conveyancer fees, these can vary
Other costs, for example indemnity insurance, if required
Do I need a deposit?
Typically 25-40%, 100% loans are available but would require additional security.
Do you I pay monthly?
The interest can be paid monthly but, is usually rolled up to the end or retained.
How do I repay a Bridging loan?
It is important to consider your exit strategy from the Bridging loan. Usually, this would be a new mortgage/refinance, selling the property or using other funds to repay the loan. It can be repaid early.
Can I get a Bridging Loan is I have Adverse Credit?
Adverse credit, also known as bad credit, does not necessarily mean you are unable to get a mortgage. Every situation is unique and we can advise accordingly.
How can I check my Credit Report?
Use this link for Check My File Credit Report
https://www.checkmyfile.partners/694W2WN/2CTPL/
Check my file offers a 30-day free trial which is £14.99 per month, thereafter, and can be cancelled at any time.
What should I do next?
When you are ready, please give us a call. One of our friendly advisers will gather information about your enquiry and offer advice accordingly. We offer FREE initial consultations.
Case Study Example
Mr and Mrs X own their house outright, so have no mortgage, it is valued at £450,000
They have £200,000 in savings.
They have found the house of their dreams for £475,000, but the seller wants a quick sale, 4 weeks maximum.
They didn’t want to lose the house, but it would take them too long to sell their own house, to be able to meet the 4 week deadline.
Taking into account their savings, they needed an additional £275,000.
After taking advice, they decided that a 6-month bridging loan for £275,000 that would enable them to buy their dream house and have plenty of time to sell their house.
The lender agreed to lend them the money they needed. It was secured it on their current property, and they were able to purchase their new dream home.
The interest rate was 0.94% per month, they did not have to pay any monthly payments as they were rolled up and paid as a lump sum at the end of the loan.
After 4 months, they completed on the sale of their house and repaid the bridging loan, £275,000 plus interest and fees.
We have a bridging loan calculator on this page if you want to work out some indicative figures, otherwise, please get in touch.
This example is based on figures from a bridging lender on 01/04/2024 and is for illustrative purposes only.
Your property may be repossessed if you do not keep up repayments in line with the lenders schedule. Think carefully before securing debt against any property.