FINANCE SOLUTIONS
Bridging finance is a short-term loan solution designed to help individuals and businesses cover gaps in funding, typically when quick access to capital is essential. Whether it’s for property purchases, business expansions, or cash flow needs, bridging finance loans provide immediate funds until longer-term finance is secured.
Purpose: Secure a property purchase quickly, generate short-term business cash flow from an existing property, fund refurbishments, and use as pre-construction finance.
| SECTOR: | Commercial Only |
| CHARGE: | 1st charge only |
| FINANCE: | £100k to £1m |
| FINANCE TO VALUE: | Up to 75% |
| RATE: | From 1.5% per month |
| ARRANGEMENT FEE: | From 1% |
| APPLICANT: | UK and non-UK residents and companies |
| TENURE: | Freehold or leasehold |
Get in touch with our expert team to explore how our tailored bridging finance loans can help you secure your next business or property venture without delay.
To get a bridge loan you will normally need to work through a loan broker because, as alluded to above, most bridging loan lenders do not deal directly with the public. High street banks are typically set up with different subsidiaries through which they handle bridging loans, and access to these is reserved for brokers.
Generally speaking, the more stable your financial situation, the easier it is for you to get a bridging loan. The lender will require proof of income, and also a credit check will be conducted, where some lenders stipulate the minimum credit score requirement.
Bridging loans can sometimes be a good idea in specific situations where there is a need for temporary funding before more permanent financing can be arranged. Here are examples: Buying a house before the sale of your current property.
Typically, provided the application does not encounter any serious setbacks and delays, bridging finance is granted and taken out within days or weeks rather than months. However, where an enquiry has been received, lenders can be expected to give an in-principle decision regarding an application within 48-72 hours.
Unlike a regular mortgage, the loan is usually repaid in one lump sum at the end of an agreed term instead of monthly.
Property/asset used as collateral: Bridging loans are normally secured against the property/asset belonging to the borrower. In return, the lender appraises the value of this collateral and decides upon the loan amount considering the risk profile of the borrower.
