A bridging loan is a type of short term property backed finance. They are often used to fund you for a period of time whilst allowing you to either refinance to longer term debt or sell a property.

Downsizing Property Purchase;Auction Purchases;BTL Property Purchase; Development Finance; Refurbishment and Redevelopment; Lease Extensions; Capital Raising; Unmortgageable / Uninhabitable Properties; Chain Break Purchases; and Almost any other legal use.

This is how you intend to repay the bridging loan. This could be the sale of a property, or to re-finance with a longer term loan. Lenders will generally look for a detailed exit strategy.  It’s possible to set up bridging finance without a clear exit strategy, but the loan will cost more due to the uncertainty.

Lenders are able to complete bridging loans in a matter of days. It will require a recent property valuation and a solicitor who is able to work very quickly.

Some lenders do allow direct contact.  Given the complexity of this market, we would strongly recommend that you work with a broker to ensure that the product you apply for is fit for purpose based on your situation and objectives.  We also have access to products and prices that you won’t have access to direct.

So long as it has value, any land or buildings can be used as security for a bridging loan. It can be set up as a ‘first charge’, or it can be set up as a ‘second charge’ if you want to keep your current mortgage in place.

There’s technically no limit to the amount of money that we can raise. We will however be limited by the amount of security in place. Up to 80% of the property (or properties’) value can be borrowed.

Yes. If you have an additional property that can be used as security then we are able to arrange finance that gives you 100% of a property’s purchase price.

Bridging loans can be set up to be in effect for a few days, or up to five years.  Typically, a loan will be 12,18, or 24 months, with a 12 month maximum if you live in the property used as loan security.  It’s possible to set up bridging loans with no fixed end date, but there would usually be an end date that corresponds with your exit strategy. 

The key elements of a loan application are about understanding a) the borrower, b) the security property, and c) the exit strategy.  The depth of information needed will depend on your circumstances, purpose of the loan, and any factors that would require additional underwriting by a lender.