Bridging Loans

A Bridging Loan is usually a short-term business loan that is often used as a temporary loan whilst you take your business from one point to another.


Where regular term loans often have more general purposes, bridging loans are usually specifically for short-term puposes. Because of this, the money can be in your business’s account as quickly as 24 hours after completing.


What can I use bridging loans for?


The most common use for a briding loan is for the purchase or renovation of a property. As long as you have a clear exit in place, the property can be either commercial or residential and of any size – though it will depend on the lender.


Are the interest rates different?


Due to the specialist nature of a bridging loan, interest rates can be higher than usual.


However, you can sometimes opt to have the interest payments ‘rolled up’, meaning you won’t pay your interest monthly but will pay a lump sum at the end of the loan.

Can they be used in financing developments?


Certainly. And they often are.


A prime example of how it would work would be if a property developer owns a site and decides to build an apartment block on there.


Getting a bridging loan for six months would allow the company to receive the funds needed to complete the work.


The loan will then be paid off by the sale of the apartments or by moving the bridging loan onto a long-term product such as a commercial mortgage.


What about for property refurbishment?


Because of the quick turnaround, bridging loans can be a perfect way to get funding for property renovation or refurbishment.


Not all properties are eligible for certain mortgages, so a bridging loan can be a good way of getting the work done to the property that will allow you to exit onto a full-term mortgage.


What about auctions?


Many buyers at auctions use bridging loans rather than a traditional provider when assisting with their purchase.


The traditional route can often take much longer, and as auctions only leave you with up to 28 days to provide the funds, a bridging loan can be the perfect solution.

Our key bridging loan features:

  • Loans available from £25k to £20m
  • Monthly rates from 0.4% per month
  • One month to 24 month terms
  • 65% loan-to-value (LTV)
  • Loans for site purchases and for the acquisition of residential, commercial and mixed use property transactions
  • Refurbishment loans
  • Bridging loan switiching to buy-to-let product
  • No exit fees
  • 1st or 2nd charge loans

Click here to read more on Bridging Loans


Call 0115 958 6872 or email for further information.

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