If you need a short term loan quickly bridging loans can work really well. Obtaining bridging finance is, in essence, a simple process and loans can be secured on both residential and commercial property assets and land / development sites. You can use bridging for any legitimate funding requirement, in most cases offering a property asset as principal form of security.

In some cases we can take other assets as security for the loan such as luxury cars, art, jewellery etc.

When To Use A Bridging Loan

  • Buying a bargain property at ‘Below Market Value’
  • Buying a property which is deemed ‘un-mortgageable’ and requires significant refurbishment.
  • Buying a property at auction and needing funds quickly to complete on the purchase
  • Raising cash to buy a business , purchase stock or perhaps buy out a business partner
  • Raising cash to pay a business tax bill
  • Raising cash to stave off a repossession order

Funds can draw down generally within a matter of days. Our experienced team will assist with all the necessary administration and valuations in order to ensure a smooth process.


Key Lending Criteria For Bridging Loans

  1. Is the security for the loan offered to the lender on a 1st charge or 2nd charge basis ?
  2. Is the security offered a residential property or commercial property?
  3. What work (if any) is being performed on the security whilst the loan is in place?

Depending on these variables, the property location and exit strategy, Loan To Value ratios move between 50% and 80%, with cost increasing alongside the perceived risk.

You can either pay interest on a bridging loan throughout the term, have it retained from the gross loan amount or rolled (accrued) into the loan. If interest is to be accrued the total debt should not exceed the maximum agreed Loan To Value.

Beware that if you cannot pay interest each month (or the lender does not offer this option) the maximum GROSS loan borrowed will differ from the NET loan that you get in your hand.

Bridging loans can be taken from one to 12 months. However, an increasing number of lenders will go up to two years if the security is acceptable and the client situation warrants a longer term. Bridging funds are normally required quickly and for a limited period of time. We can provide funding for any legitimate purpose over loan terms ranging from 1 day to 24 months. 

In general, our lenders offer loans from £5,000 to £15 million at rates from 8% pa.