What is a Bridging Loan?
A Bridging Loan is a short-term loan, usually for no more than 12-18 months, arranged quickly and secured on assets (usually property but increasingly other valuable items). Bridging loans are suitable for buying property at auction, refurbishment prior to sale and meeting urgent cash requirements.
- Available across the UK (restrictions
apply in Northern Ireland)
- Amounts available from
£10,000 to several million
- Available up to 75% on a
first charge, 65% on a second charge and 60% on a third or fourth charge
- 100% bridging finance
available (with extra security)
- Loans secured on
residential and commercial property, or other assets
Bridging Finance UK
There are many bridging loan deals available in the UK. However, it's recommended to find the best bridging loan rates available with a reputable lender. As a broker, we ensure your finances are placed with lenders who won't let you down. Tell us about your project and we'll provide a detailed breakdown of the residential or commercial bridging loans we can find for you, plus any associated costs.
We can also assist with Auction Bridging Finance. Click the link for more details.
If your loan is a Second Charge Bridging Loan please click this link to see the specific terms around this type of Bridging Loan
To get a quote today, please contact us on 01494 410 125 or complete the form opposite and we will get back to you.
"I would highly recommend Choice Loans who are experts in their field"
David Cook, Castello Leisure
What is needed to apply
Applying for a Bridging Loan is very easy. Below are listed the things you need in order to apply.
- Eligibility Criteria You just need to own a property that can be used as security and have a reasonable credit rating (though sometimes that's optional too)
- Documents Required Proof of ID, proof of ownership and an application form
- Additional Comments Loans can be arranged in as little as 48 hours but you pay for the privilege. Normally they take 7-10 days.
- What is the most import an thing to consider when being approved for a Bridging Loan?
Your exit. The first thing lenders will want to know is how you intend to repay the loan and how credible that plan is
- How much can I get?
There is no maximum nominal amount but it depends on the LTV. For a 1st charge we can get up to 75% LTV and for a 2nd charge up to 65% LTV all depending on the nature and location of the property/asset being offered as security.
- How long can I have the loan for?
Normally up to 12 months but in some circumstances you can extend to 18 or even 24 months though interest may need to be periodically serviced in these longer loans.
- Can I get a Bridging Loan on an unmortgageable property?
That's exactly what Bridging Finance is for. You can use the bridging Loan to bring the property to a mortgageable condition and exit the Bridging Loan with that finance.
- How fast can it be arranged?
It can be done in 48 hours but at a cost, so we would prefer to say 5-7 days.
- Can I get a Bridging Loan if I have adverse credit?
Generally speaking yes, but if your credit is very severe then maybe not.
- What will the Bridging Loan cost?
Interest is expressed monthly and is from 0.6%-2% per month. Lower rates are for loans with a low LTV, on a property/asset that can be easily resold in the event of foreclosure, a strong-credit borrower and a clear exit.
- What are the fees to arrange the loan?
If you choose to use us to arrange your finance you will be charged a fee of 0.5-1%. Additionally there may be a lender fee (usually 2%) to be paid and it is usual in this market that the borrower also pays the lender's legal and valuation fees.
- Why should I use a broker to arrange a Bridging Loan?
You can do all this yourself but with 80+ lenders out there, we can more quickly get you to the best rate and also ensure you are borrowing from a reputable, established lender. We will also guide you through the application process and ensure your application is presented to the lender in a manner than makes it most lily to be accepted at the lowest rate.
To learn more or to apply for a Bridging Loans please either ﬁll in the call back form at the top of this page or call us on 01494 410 125 and we'll walk you through your options at no cost or obligation.