What are the benefits of bridging finance?

There are some unique benefits when considering bridging finance that you wonu2019t get with any other type of loan, with the following being the main advantages:nnSpeed of Arrangement: Bridging loans can be typically arranged in a very short space of time, often in as little as a few days, making them the perfect option for raising cash for time-critical purchases.nLow borrowing costs and competitive interest rates: UK Property Finance have access to all the market and therefore can find great deals on bridging finance from a wealth of specialist bridging lenders across the UK. Depending on your financial standing, you may be able to get lower rates and fees, but this will be assessed on an individual basis.nSimple application processes and lending criteria: Applications for bridging finances are considered on an individual basis by the lender and are generally open to all applicants, even those with a less-than-perfect credit history. Provided the borrower has sufficient security and a viable exit strategy, being approved is a relatively simple process, and proof of income may not be required.nDeferred Payment: A bridging loan is typically repaid in full, including any interest that has been accumulated, at the end of the loan period.nAvailable for all purposes: Provided the applicant can meet all their payment obligations, bridge loans can be used for any legal purpose whatsoever. They are especially useful for purchases that need to be done quickly, for example, when buying a property at auction.nMinimal Documentation: Bridging loans often need less documentation than standard loans, which simplifies the application and approval process.nMultiple exit strategies: Borrowers can repay the bridging loan in a variety of ways, including selling the property, refinancing with a standard mortgage, or seeking other finance.nFlexibility: Bridging loans have very flexible repayment terms, allowing borrowers to adapt the loan to their individual financial circumstances and needs.

What are the cons of a bridging loan?

When looking at the positive aspects of bridging finance, itu2019s equally important to consider the disadvantages:nnHigh Interest: When comparing the high-interest rates attached to bridging loans with more traditional long-term loans, you will find that the borrowing costs tend to be higher due to the short-term nature of this type of loan.nAs a bridging loan is a secured loan, it is necessary to have sufficient collateral to offer the lender as security. Without enough equity or assets to guarantee the loan, finding a lender who is willing to take the risk will be difficult.nThere are various fees and charges associated with bridge finance, which can add up quickly and significantly increase the overall cost of the loan. Many lenders charge a variety of administration, processing, and completion fees, so it is advisable to know exactly what costs you will need to take into account.nDependency on property value: The amount a borrower may borrow through a bridging loan is frequently determined by the value of the property used as collateral, which may limit access to money for borrowers with lower-value properties.

How quick is a bridge loan?

Bridge loans are known for their speed compared to traditional loans, but the wait time can vary. In ideal situations, you might get an initial decision within a day and the funds within a week. However, a more typical timeframe is 5u201321 days, depending on the complexity of your situation and the lender's process.

Is it difficult to get a bridging loan?

Getting a bridging loan can be trickier than a regular loan. While lenders can approve them quickly, they involve higher risk for both you (due to high interest rates) and the lender (as they're secured on property). To qualify, you'll typically need a solid financial situation, a clear plan to repay the loan (often through selling an asset), and potentially good credit.

Do you need proof of income for a bridging loan?

Proof of income for a bridging loan is usually less crucial compared to traditional loans. Since bridging loans are secured on property and often repaid in a lump sum, lenders focus more on the value of the asset and your exit strategy (how you'll repay). However, some lenders might request income documentation to assess your ability to cover interest payments or for future business with you.

Can I borrow money against my house to buy another property?

Yes, borrowing against your house to buy another property is possible. It's achieved by leveraging your home's equityu2014the difference between its value and what you still owe on your mortgage. There are ways, like remortgaging or taking out a second mortgage, to access this equity. But remember, this increases your debt and puts your home at risk if you can't repay.

Do you make monthly payments on a bridging loan?

Bridging loans typically don't require monthly payments like a traditional mortgage. You'll usually repay the entire loan amount (principal + interest) in a lump sum at the end of the term, which is often short, around 1 year. However, some bridging loans may require monthly interest payments, so be sure to clarify the repayment structure with your lender before you borrow.

What happens if you don't pay a bridging loan?

Missing payments on a bridging loan can be serious. It can lead to hefty late fees, higher interest rates, and damage to your credit score. In more severe cases, the lender could repossess the property used as security for the loan or even take legal action to recover the debt. If you're struggling to repay, it's crucial to communicate with your lender early to explore options like extending the loan or finding alternative solutions.

How risky are bridging loans?

Bridging loans involve significant risks. While they offer fast access to funds, they come with high interest rates and short repayment terms, putting pressure on you to repay quickly. They're secured on assets like property, so failure to repay could lead to repossession. A solid exit strategy, like selling a property, is crucial to avoid getting stuck in debt.

Do bridging loans show up on your credit report?

Yes, bridging loans will typically show up on your credit report. This includes both successful applications and unsuccessful ones. Having a bridging loan on your report isn't inherently negative, but it can affect your credit score, especially if you have multiple applications or delinquencies. Make sure you understand the impact on your credit score before taking out a bridging loan.

Bridging Loans - Fast Short Term Loan

Explanation of a bridging loan

A bridging loan is a short-term secured loan, typically used to “bridge” a gap between the sale of one property and the purchase of another. It can also help fund renovations or auction purchases or resolve cash flow issues. Bridging finance is available to individuals, businesses, and property developers.

Key benefits:

Access funds quickly (typically within 3-5 working days)
Borrow from £25,000 to £25 million
Terms from 1 to 24 months
Residential, commercial, and land finance available
No early repayment penalties

How bridging finance works

Bridging loans are secured against property or land. You borrow a set amount over a short term, with interest usually rolled up or paid monthly. At the end of the term, the loan is repaid through the sale of a property, refinancing, or another liquidity event.

Example:

You want to buy a new home before selling your current one.
A bridging loan provides the deposit or full purchase price.
Once your existing home is sold, you repay the loan.

Watch our video: Bridging finance made easy!

Bridging finance is ideal for:

Bridging loan rates and costs

We offer highly competitive bridging loan rates from just 0.55% per month. Costs depend on:

Loan amount and term
Property type and value
Exit strategy (e.g., sale or refinance)
Borrower profile

Our team will guide you through all fees, including arrangement, legal, and valuation costs.

Reasons to choose UK Property Finance

We are whole-of-market bridging finance specialists. Unlike a bank, we can source from over 100 lenders, including private banks and specialist providers.

What sets us apart:

FCA regulated broker
Fast decisions and same-day quotes
No upfront fees
Access to exclusive bridging deals
Transparent, tailored advice

What are common types of bridging finance?

L

K

Buy to Sell
Buying a new house
Purchase an auction property
Loans for tax issues
Renovation and/or refurbishment projects
Business bridging finance
Cash flow problems
Buy-to-let and overseas properties

How much does a bridging loan cost?

L

K

To calculate exactly how much a bridging loan will cost, we have created a bridging calculator. Simply input your data into the relevant fields, and the bridging loan calculator will do the rest!

What is the basic criteria for borrowing?

L

K

You need to be at least 18 years old and have property in the UK, which is also open to foreigners.
Properties: Residential, commercial, or land across the UK, including uninhabitable conditions.
Loan sizes begin at £20,000, with terms ranging from 1 day to 1 year.
The maximum loan-to-value (LTV) is 75% without additional security, and can reach 100% with additional security.
We accept flexible borrower profiles, have no age restrictions, and accept adverse credit.

Do I need to make monthly repayments?

L

K

You can choose rolled-up interest (paid at the end) or service the interest monthly. We’ll advise on the best option.

Is a valuation required?

L

K

Yes. The lender will require a professional valuation of the property used as security.

Need help with bridging finance? Apply today!

Contact us today to explore your options. Our experienced team is here to guide you every step of the way.

We make the process fast and straightforward. Get in touch for a free consultation with one of our experts.

Call us: 0116 464 5544
Request an instant quote
Use our calculator

See our reviews! We are rated Excellent 4.78/5 ★★★★★

★★★★★

We needed a bridging loan to help us refinance our property. Highly recommend Jessica who is always helpful if there’s any problems she gets onto them straight away.

Seemab Ali

★★★★★

UK Property Finance are wonderful. We had a complicated house sale, splitting our title and converting our barn. It was a complicated bridging finance situation.

Mrs Osborne

★★★★★

When times get tough all you need is a helpful people like Kelly to sort things out with ease. Highly recommend UK Property Finance Kelly and the team!

FCA Regulated

Whole of Market

Leading Rates

Open 7 Days a Week

Extended Working Hours

Rated excellent on Trustpilot

Highly Experienced Advisors

Explanation of a bridging loan

How bridging finance works

Watch our video: Bridging finance made easy!

Bridging finance is ideal for:

Bridging loan rates and costs

Reasons to choose UK Property Finance

What are common types of bridging finance?

How much does a bridging loan cost?

What is the basic criteria for borrowing?

Do I need to make monthly repayments?

Is a valuation required?

Need help with bridging finance? Apply today!

Seemab Ali

Mrs Osborne

Janet