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Bridging Loans

Best Bridging Loan Broker

UK Property Finance Ltd are a whole of market broker who have established relationships with all of the most reputable lenders across the UK, giving us access to the best deals and rates available. As specialists in bridging finance, we can guarantee to partner our clients with the right lender to suit their unique requirements, while assisting every step of the way.

Whatever your goals are, we will find the perfect bridging loan for you.

  • Loans for any (legal) purpose
  • Business bridging finance for equipment and/or cash flow problems
  • Bridging loans to purchase auction property
  • Loans for tax issues
  • Loans to fund investment properties and buy-to-let properties
  • Bridging finance for renovation and/or refurbishment projects
  • Bridging solutions for chain delay issues for buyers and movers

Short Term, Flexible and Fast Bridging Loans

As a ‘whole of market’ broker service, UK Property Finance have the ability to source the cheapest bridging finance deals for borrowers. We have no affiliation with any singular lender and full access to the best lenders across the UK, giving us access to deals you would not find on the high street or with the big banks.

As a FCA Authorised & Regulated, Master Finance Broker, UK Property Finance specialises in fast access to bridging finance for all purposes, including the purchase of overseas property!

Our team are highly experienced and dedicated to saving you time and money. We invest in our staff by ensuring they are highly trained and are fully committed to ensuring we give a second to none service to all of our bridging loan clients.

We pride ourselves on the ability to arrange fast bridging finance and are able to assess your situation quickly and can often give you a YES or NO decision the very same day.

Borrowers have various reasons for considering applying for a bridging loan. Most commonly, bridging finance is used to ‘bridge’ the gap between buying a new property and selling a current property, when there is a delay in the chain. Although this is the most traditional use for this type of funding, these days bridging finance is beneficial as a solution for raising much needed cash for other purposes.

Bridging finance is a short term funding vehicle, typically with a term of between 6 and 12 months, which can be extended under certain circumstances.

Interest rates will vary from lender to lender, but are usually based on the LTV (loan to value). For the best rates it is always advisable to employ the services of a reputable bridging loan broker, who will also provide support every step of the way.

Rates offered will also be based on the size of the loan required, the security you have to offer the lender and whether the loan will be a 1st or 2nd charge. To calculate exactly how much a bridging loan will cost, we have created a calculator for your convenience. Simply input your data into the relevant fields, and the calculator will do the rest!

Contact us for no-obligation assessment, quotation and full explanation of all of our bridging finance packages and deals. Our dedicated staff are always on hand to answer any questions you may have.

What is a Bridging Loan?

Bridging Loans Explained

Bridging finance is a short term, secured loan, which can be arranged quickly when time is of the essence. A borrower can be approved in as little as a week which makes it a perfect funding vehicle for purchases that require fast access to funds.

A bridging loan will typically be repaid within 12 months, with the total amount only becoming due for repayment at the end of the term. Generally there are no monthly payments made for this type of loan and interest is only charged on the length of time that the finance is used, therefore the sooner you repay the less interest will be due.

So for example, if a loan with a 12 month term is repaid in 3 months and 8 days, then interest will only be charged for that time period, not the whole 12 months.

With bridging finance there are no exit penalties if the loan is paid early, however, the lender will most likely require an exit strategy, outlining exactly how you intend to repay the loan, before approving you for funding.

Bridging finance is particularly useful for borrowers who have not been accepted for more traditional loan products. Applicants may be refused other types of loans for the following reasons:

  • When the applicant is older than the new acceptable age limits it can be difficult to secure a mortgage
  • The applicant may be rejected due to being asset rich but cash poor, and therefore is unlikely to pass the affordability test in order to qualify for a long term loan like a mortgage
  • The applicant may have a poor credit history and therefore not eligible for a mortgage
  • If the property is uninhabitable an applicant may be rejected until the property has been upgraded to a liveable state
  • The property the applicant is trying to purchase may have a seller who is only willing to sell to buyers who are chain free
  • A loan could be required for a development opportunity foe which other funding products are not suitable
  • The finance may be required for additional borrowing such as a 2nd charge
  • The applicant may have a time limit to raise funds for urgent needs or an unmissable purchasing opportunity and traditional loans may take too long to arrange
  • The applicant may only need a short term, flexible funding option
  • The borrower may want to secure the purchase of a new home but the deposit is tied up in their current property which has not yet sold

How Bridging Loans Work

Many high street banks across the UK have withdrawn many their bridging finance packages leaving a gap in the market that has been filled by smaller, specialist lenders offering successful applicants the chance to secure a bridging loan at competitive rates. These lenders have made it possible for borrowers to access large amounts of funding, with approval being granted sometimes in just a matter of days.

It is important to know how bridging finance works before you choose this as your option. UK Property Finance have all the expertise to assist you in

securing the right type of financing for your requirements. You should consider the following facts:

  • Bridge loans are routinely secured against existing land or property. Proof of income and good credit scores may therefore not necessarily be required by the lender to be approved.
  • Applicants can typically borrow up to a maximum gross loan (net loan + all fees and interest etc) of 75%/80% of the value of the property you wish to purchase. This will vary from lender to lender with most willing to negotiate.
  • Bridging brokers with access to the ‘whole of market’ will be able to search and compare bridging lenders across the UK to find the best deal for your individual circumstances.
  • Bridging finance is generally repaid in full at the end of the term (usually up to 12 months) including all interest that has incurred.

Exit Strategies for Bridging Loans

An exit strategy is required by the lender in order to show them how you intend to repay the loan at the end of the loan period. It is of paramount importance that you have a clear and viable exit strategy in place in order to ensure the lender that you will be in a position to meet your payment obligations when the time comes. This is vital because of the short term nature of a bridging loan.

Due to the short term nature of bridging finance, you can expect to pay higher interest rates than you would for long term finance. If the loan is not in accordance with the agreement, those costs could become higher due to additional charges such as renewal fees and penalty charges.

An exit strategy must be strong and be of sound financial sense. Most exit strategies involve the sale of property or re-financing with a long term loan such as a mortgage.

Qualifying for a Bridging Loan

Bridging finance is often the best funding method for the following:

  • Applicants who can or cannot prove income
  • Applicants with a good or bad credit history
  • Applicants who are employed, self-employed or unemployed
  • companies or individuals
  • Applicants with equity in their property/home or those with access to a cash deposit
The table below resembles a typical £100,000 bridging loan
Interest RateMonthly Interest
Typical repayment cost (based on a rate of 0.39%) over 12 months (excl. broker fees etc)
Loan TakenFull Repayment

The Below Criteria Applies to Bridging Loan Applicants:

  • Commercial & Residential property (all conditions considered including uninhabitable).
  • Land & property in England, Wales, Scotland & Northern Ireland.
  • Land, with or without planning permission/approval
  • Loan sizes from £10,000 upwards
  • 1st, 2nd or 3rd charges
  • Ltd company and individual loans
  • Competitive interest rates and bespoke deals
  • 2nd charges following Bridging Finance or Equity Release mortgages
  • With or without proof of income.
  • Employed, self-employed, unemployed or retired.
  • No age restrictions.
  • Loan terms from 1 day to 3 years.
  • Up to 75% LTV (Loan to Value) without additional security needed.
  • 100% or more LTV with additional security.
  • Adverse credit acceptable.
  • No valuation fee possible for some borrowers.
  • No solicitor fees or representation on some bridging products.
  • Loans for virtually any (legal) use.
  • No exit fees on the majority of products.
  • Quick approval and completions.

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