Loan Amounts and Funding Terms
Loan Terms
Loan terms between 3 months and 3 years with fixed monthly payments
Loan Amounts
Loan amounts ranging between £50,000 to £10 Million
Eligibility Criteria
LTV
You own a UK based property or land with sufficient equity to service a Loan to Value (LTV) no higher than 85% maximum (more typically 70%) – this differs subject to the property type.
Company Status
You are a UK registered sole trader, limited company or partnership
Loan Purpose
You can use bridging finance to complete a property purchase, or to raise capital for cashflow for business use only
Bridging Finance
Bridging Finance literally means ‘to bridge the gap’, this can be taken in a number of ways; to bridge the gap before entering into a long term mortgage, or to bridge the gap between contracts where cashflow will be an issue.
Whether you are private individual or a UK registered business, bridging loans can be secured on a range of property and land, providing it is located within the UK.
If you are looking for quick completion of a property purchase, to raise capital for cashflow or to help repay adverse debt then bridging finance can be a suitable option.
How to apply for bridging finance?
Quick Applications
Fill out our application form in less than 5 minutes
Dedicated Support
Your application will be allocated to your dedicated case manager
Quick Responses
Your case manager will be in touch within 4 working hours
Minimal Paperwork
They will collect all required documents to process your application
Quick Decisions
You will receive a decision within 48 hours in most circumstances
Fast Payouts
You will receive your funds within 48 hours of acceptance in most circumstances
The Benefits of Bridging Finance
Flexible Terms and Borrowing Amounts
Bridging finance is available over flexible terms ranging from 3 months to 3 years.
Borrowing amounts are restricted to amount of equity and LTV (Loan to Value). The maximum amount lenders are likely to offer is 85% LTV.
Increased Spending Power
Releasing equity held in land or property and being able to repay with fixed monthly repayments can make it easier to manage your spending commitments.
With access to increased cash flow, you are able to complete purchases, increase spend on projects and maximise your portfolio without impacting on existing cash reserves.
Increase Property Portfolio and Value
Using bridging finance to assist with a purchases and renovations can take the strain from company cash flow and enable you to focus on increasing the value of your assets and portfolio.
With access to quick funding, you are able to take advantage of gaps in the market, being quick to purchase and complete suitable projects such as;
- Residential houses
- Buy to Lets - individual and portfolio’s
- Commercial property - all types
- Land with planning permission
- Land without planning permission
- Golf Clubs, Caravan Parks, Hotels, Retail Outlets, Pubs
Reliability
With income being the life blood of any business, having a reliable source of cash flow is of paramount importance.
With bridging loan lenders actively funding the property and development market, you are likely to have a consistent and reliable source of finance to allow you to take your business to the next level.
In the fast-paced world of business, seizing opportunities is essential for growth and success.
With its flexible and accessible nature, bridging finance provides a solution for businesses looking to scale rapidly.
With its quick approval process and its ability to bridge financial gaps to fund expansion and new projects, bridging finance can propel your business forward.
By leveraging bridging finance, you can take advantage of time-sensitive growth prospects that could otherwise be unattainable. Unlike traditional bank loans, bridging finance offers a quicker approval process and less stringent eligibility criteria, making it a viable solution for businesses in need of immediate funding.
View our full range of business finance facilities here
Frequently Asked Questions
Bridging finance has become a very competitive market in recent times with all the major banks looking to gain a foothold in lending in this sector. Each lender has a key USP that helps them become tailored in the market space.
Some have gone for the low pricing model, however this impacts the speed for completion whilst others look at a very quick turnaround whilst charging higher rates.
Bridging loan terms are available from 3 months to 3 years.
There are two main options for repayment of a Bridging loan and they are:
- Serviced – This means you pay the interest of loan only on a monthly basis, with the full capital due at the end of the term.
- Retained/ Rolled – This means all capital and interest is kept back until the end of the term where you will pay both in one bullet payment.
- 1st Legal Charge – this means that the Lender takes first position on the title deeds. This is the strongest position a Lender can be in and will usually offer better rates to be lodged in this position.
- 2nd Legal Charge – This means that the Lender will sit behind the first charge holder on the title deeds offering a premium rate due to higher risk if the LTV becomes tight. We will need consent from the first charge provider to place this charge.
- Equitable Charge – This is a very specialist type of lending and does not require the consent of any of the legal charge holders. This can be an expensive option however is useful when dealing with banks who do not wish to grant the 2nd charge. Very rarely are Equitable Charges granted when a 2nd charge is in place.
We can have funds ready for you within 48 hours of acceptance of the loan, however for the more complicated cases this can take up to 4 weeks.
Each case is different, and it will very much depend on a number of variables.
Related Resources
Bridging Loans Explained
If you're in need of quick funding for a property purchase but don't have the necessary funds available, a bridging loan could be the solution you're looking for.
Whether you're a property investor or a developer looking to complete a project, bridging loans can provide the funding you need.
Click to read more
How to get started in property development and secure funding
Property Development takes planning, time and most importantly money.
There are many routes you can take to become a property developer, either alone, in a partnership or using a property investment company.
Click to read more
Secured vs Unsecured Business Loans
Find out the differences in secured and unsecured business finance.
Unsecured loans are those that are not secured against personal or business assets. Most secured loans are secured against property or business assets.
Click to read more