UK Bridging Loans: Your Bridging Finance Partner
Short-term, flexible funding options that will help you ‘bridge’ the gap between your available capital and your future. Get a FREE, no obligation bridging loan quote today. Our team of brokers, here at UK Bridging Loans, is available 24/7.
Secured Bridging Loans
Secured bridging loans are the most popular form, securing the loan against an existing property brings better interest rates and more interest from lenders. Find out more here.
Unsecured Bridging Loans
Unsecured bridging loans are harder to get hold of as banks normally insist on securing your loan against a property/asset of some kind. However, we are approved to offer this option to customers. Find out more here.
Submit An Enquiry Online. Find out how much you can borrow today.
What Is Bridging Finance?
Bridging finance is a type of loan that gives you a helping hand in getting from one step to the other. Here at UK Bridging Loans, our experts have over 20 years experience in the sector.
Bridging loans are a type of finance which is widely used as a temporary solution and is typically meant for a short-term purpose. Essentially, a bridging loan can provide lenders with the quick cash injection they need to move forward. Funds are usually made available within a reasonable period of time, so if you are on a short timeframe, then a bridging loan may be the best option for you.
Bridging loans can help prospective property buyers or investors secure their home by removing the financial gap which so often occurs between switching mortgages. In the UK, bridging loans are the ideal financial choice for those who are moving on from their first home and are in the buying and selling process, those who are refurbishing their properties and houses purchase at auction. UK bridging loan reviews and research shows that bridging finance is a useful tool which can be used in a number of different scenarios, such as refurbishment projects or property acquisition.
The eligibility criteria for bridging loans finance is often determined by bridging loan companies on a case-by-case basis. Because of this individualised approach, here at UK Bridging Loans, we have no set criteria for applying. Those who are eligible for bridging finance include:
- Companies and individuals
- Clients who are over 18 years of age
- Clients with both perfect and weakened credit history
- Clients who are employed, self-employed or currently unemployed
- Clients with a property in poor condition
If you are looking for a loan but are unsure of your eligibility, contact the team here at UK Bridging Loans for more information.
What Is The Process?
The 5 Step Process
The Bridging Loans Process Explained
The full process of applying and receiving your bridging loan can take anywhere between 7 to 28 days. Here at UK Bridging Loans, we pride ourselves on offering quick service, as we know that you are in a time-sensitive situation.
With a bridging loan, it is recommended that the finance is used to “bridge” the gap between finance for up to a maximum period of 12 months. If you require a loan for longer than 12 months, then a bridging loan is unlikely to suit your personal needs.
Find more information on the application process and what you can expect during the bridging loan process here. Applying for any kind of finance or loan can be a daunting process, but here at UK Bridging Loans, we’re on hand to guide you through the process and offer support and advice should you need it.
The Application Process
Providing that your application is approved, then your bridging loan will be processed as quickly as possible. Documentation will be required in order to support your application. We will then send your details on to the lender.
2. Client Quote
When it comes to your loan options, these will be discussed with you during your initial enquiry. You will be asked some questions so that we can understand what type of loan will suit you, such as how much you would like to borrow, duration of the loan and what it will be used for. Once this information has been provided, an advisor will be in contact to further discuss your application in due course.
3. Legal Department Instructed
Depending on individual circumstances, the role of the solicitor involved in your bridging loan application will vary. The solicitor involved with your application will receive the necessary papers for completion from the lender.
The lender will then instruct a surveyor to carry out a valuation on the property in question. It is important to note that a valuation may not be needed if the property has only recently been surveyed.
5. Finalising Your Bridging Loan
In the final steps of your process, you will be issued with a formal offer with documentation to sign. The solicitor will then finalise the legal process in order to release the funds to you, but the time in which this takes varies. Following the release of the funds, you will then have until the pre-agreed date to pay back your loan. During the process, you will have also agreed on an “exit route”, which details to us how you plan on repaying back what you have borrowed from UK Bridging Loans.
Compare Bridging Loans
The ideal bridging loan for you will take your circumstance into account, for example, what you’re using it for and how long you need to borrow it for.
Finding the best type of loan for you can be a confusing time, as there are so many types of loans available. With bridging loans, there are some things you should consider:
- What is the maximum LTV (loan to value)?
- How long can you take out the loan for?
- What is the maximum amount you can borrow?
- What would the monthly interest rate be?
There are many bridging loan companies on the market which offer good terms, but tend to come with bad rates. Therefore, you will need to analyse what is most important to you. A lender may be the cheaper option, but they might not be able to offer you as much as you are looking for and they could be stricter upon application.
Bridging Loans Example
If you are looking to secure a property, you may wish to apply for bridging finance before you miss out. In many cases of people looking for a loan, the sale of their current property has not yet been completed. That’s where our loan comes in.
This example is working on the assumption that the applicant needs a £100,000 loan as they have the remaining costs in cash. We would then be able to lend the client the £100,000 required to secure the new property.
Costs Of a Bridging Loan
Typically bridging loans’ costs consist of an arrangement fee and then your monthly interest rate which is paid in a lump sum at the end.
In the instance that the property is sold after 6 months, the initial £100,000 loan and fees from the sale will then be used to repay the bridging finance. The balance will be given to the client.
How Does Repayment Work?
The “Exit Route”
What is bridging finance & how does it work?
How do home bridge loans work?
How much can I borrow?
- Your income
- Your monthly expenses
- The amount you can afford as a deposit
- get your quote for a bridging loan, just head to our contact page and fill out our simple form.