Lloyds Bank

Should you choose a bridging loan or development finance?

UK Property Finance offers a range of broker services to help people and companies find the best financing options. Along with bridging loans, we work with major lenders to find the lowest rates for development financing and commercial financing.

Bridging loans are used when you need to bridge the gap between the sale of a property and the purchase of a new property. These loans are also often used to finance the purchase of new properties while waiting to obtain long-term financing. There are situations where development finance may be a better option.

Real estate developers often require financing throughout the development of the property. The funds are often released incrementally instead of all at once. As stages of the project are completed, the value of the property increases, adding security to the loan to secure additional funds for the next stage of development.

Bridging development finance is more suited to real estate developers. The typical individual seeking finance for the purchase of a primary residence will likely require a standard bridging loan.

Understanding the fees and costs of bridging loans

Bridging loans typically include additional fees. When applying for a loan, you should consider the total cost of the loan, which includes these fees and the interest that you pay.

Most of the bridging loan options we deliver don’t always include upfront lender fees other than a valuation report. We charge an arrangement fee for successful applications and an application fee to obtain a decision in principle. The arrangement fee, along with any legal costs, are typically added to the total cost of the loan.

As there are no monthly payments, the total cost is due by the end of the loan term, along with any interest that has accrued. Luckily, you are only charged interest for the months that the loan is in place. This allows you to reduce the total interest paid by paying off the loan before the end of the term.

Why contact UK Property Finance for your bridging loan?

We want to make the process of obtaining finance simple. We use a simplified application process to provide you with a variety of bridging loan deals and take the hassle out of getting funds for your real estate purchases.

We are a leading property finance broker with access to the best bridging loan terms and schemes. We search for the best options to help save you time and ensure that you get a financing solution that works for your specific needs. Use our online forms to submit a quick inquiry.

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