If you are not able to pay within the timeframe agreed with the lender then the first recommendation is to speak to the lender directly. They will then be able to support you in repaying the loan. On a case-by-case basis, lenders can consider an extension however this is not guaranteed. If your existing lender cannot help you, we recommend you contact UK Property Finance to review other options. We can explore re-bridge options, where you take out another bridging loan to clear the existing, and then this will allow you a further 12 months to clear the loan. We can also review any mortgage options that may be available to help clear the loan. The worst-case scenario is repossession however the lender will look to exhaust any alternative options first to help get the loan paid.

We suggest commencing the bridging loan process as early as possible to limit the potential problems arising from funds not being available. Our quoted guidelines however are:

A bridging loan term is between 12 and 18 months.

We source the most competitive rates available based on your circumstances. The interest rates are dictated on many circumstances such as loan to value, security type, the reason for the loan etc. Our experienced advisors will be able to give you an indication of the interest rates following a short conversation about your requirements.

There are usually no early repayment charges with bridging loans, however there can be redemption fees payable when clearing the loan in full. Some lenders also have a minimum amount of interest payable such as 1 to 3 months. For example, if you repay the loan within 1 month you may still be liable for 1 months’ worth of interest.

Bridging finance is security based, so although lenders have criteria around adverse credit, there are multiple lenders available who can consider any credit issues. Ultimately the lender wants to ensure that the exit strategy is viable. For example, if you have credit issues and you are selling the property to clear the loan, there is less risk to the lender. However, if you were looking to re-mortgage, the lender will only proceed if a mortgage decision in principle can be evidenced based on your current credit file.

There are a couple of lenders that can offer an equitable charge. This type of charge does not need permission from the 1^st charge lender which means we can still proceed with the bridging loan if your lender denies consent for a second.

Lenders typically ask for income proof; however, it is more for their compliance. Bridging loans are not impacted by the income as there are no monthly payments, it is predominantly asset-based finance. If you are looking to re-mortgage to exit the loan, then the lender will want information around your income to ensure a mortgage would be possible.

Bridging loan can be used for any legal purpose. For the application we will need to know exactly what the funds will be going towards as lenders have different criteria around what they accept.

The type of security helps determine which lenders are available. We have lenders that can use any property type as security, whether its your main residence, residential investment, commercial, semi-commercial and part-built properties.

Yes! The application will be done based on the ownership showing on the land registry or the intended ownership on any purchase properties.

Yes! The application will be done based on the ownership showing on the land registry or the intended ownership on any purchase properties.

There are valuation fees with most lenders to pay upfront and a cost undertaking for legal fees are usually payable upfront. There can be an application payable upfront to start the process. These costs will be outlined in your initial quotation.

There will be a lender arrangement fee, a broker fee, a valuation, and legal fee as the standard costs. Then there may be additional costs which vary between lenders such as title insurance fees, admin fees etc. These will be outlined in your initial quotation. Some fees are added to the loan, and some will be payable upfront.

Yes, this is possible and if you pay lump sums towards the bridging loan the rolled-up interest will also reduce as you are only charged interest on the outstanding balance.

We take data protection very seriously as an FCA regulated broker. We will not pass on your details or disclose your personal details to a third party.

This means you have fixed exit strategy in place with a set repayment date. The lender will usually ask for evidence of this.

This is when there is not fixed exit strategy in place in terms of timescale. For example, if you are selling a property on the open market.

Bridging loans are used for any refurbishment project, where as development finance is for ground up builds. The structure of both loans is very similar in terms of the interest being rolled up. Development finance is higher risk therefore is more expensive in comparison to a bridging loan where refurbishment or a conversion is required.