Market-leading ratesDirect lenderAll scenarios coveredFast approval and completionInstant quotationsOpen 7 days until 95* reviewsWe are one of the top rated bridging finance lenders in the UK. We keep the process simple and efficient.
How the process works:
1. Get a Quote
During a phone call, we’ll discuss your needs, take a look at your eligibility for a bridging loan and provide you with a quote. If you're happy with it, we move to step 2.
2. Approval
We’ll get a decision in principle (DIP) within a couple of hours. If approved, we send you a detailed quote and terms.
3. Property Valuation and Application
If necessary, a property valuation will be done. We’ll gather your details and submit your application for underwriting. Once approved, you’ll get the final offer.
4. Completion (Drawdown)
Once everything is ready, the funds will be released to you.
A bridging loan is a short-term loan providing quick cash flow. It’s commonly used in situations like:
Bridging loans are shorter-term and have higher interest rates than standard mortgages, typically repaid within 6 to 12 months
The table below shows why we offer the best bridging loans in the UK. Below is an example of one of our 12-month bridging loans taken out at a rate of 0.55% and the repayment to be expected. For a more in-depth look at how much a bridging loan would cost you why not take advantage of our bridging loan calculator.
| Loan | Repayment |
|---|---|
| £50,000 | £59,254 |
| £60,000 | £70,148 |
| £70,000 | £81,042 |
| £80,000 | £91,936 |
| £90,000 | £102,829 |
| £100,000 | £113,723 |
| £110,000 | £124,836 |
| £120,000 | £135,948 |
| £130,000 | £147,060 |
| £140,000 | £158,172 |
Here are some common ways people use bridging loans:
Downsizing to a smaller home
Homeowners often use bridging loans when they want to downsize but need to sell their current home to fund the new one. Meaning, someone moving from a £400,000 home to a £250,000 property may need to sell their house first. Using bridging finance for this approach speeds up the process and can cost less than a traditional mortgage.
Buying an unmortgageable property
Investors and buyers use bridging finance loans to purchase properties that need major renovations or have features that don’t qualify for standard mortgages. These properties can offer a great investment potential, but traditional lenders won’t finance homes that aren’t immediately habitable.
Purchasing auction properties
Bridging loans are perfect for auction purchases, where buyers often have just 28 days to complete the transaction. Conventional mortgages can’t usually meet this tight deadline, but a bridging loan—arranged in a few days—ensures the buyer can complete the purchase on time.
Bridging loan to cover private care cost
When someone needs funds for private care but can’t sell their home fast enough, bridging finance provides the necessary cash flow. This allows them to pay for care without rushing the sale of their home, giving them time to secure the best possible price.
Commercial development and construction projects
Developers and construction firms use bridging loans to fund everything from new builds to property renovations. These high-value loans, which can £25 million, provide short-term financing to keep projects on track for completion.
Clients approach UK Bridging Loans either directly or via introducers. Basic questions by way of a “fact-finding” process are used by UK Bridging Loans to determine if the lending requirements are a possibility.
An immediate yes or no answer is given, and if suitable, a quotation is formulated and forwarded to the client, usually by email.
A formal offer is produced for any client wishing to proceed and forwarded for signature, again, usually by email.
Each client is visited at the security address for the signature of the remaining loan paperwork, including a CH1 land registry charging order. We will also collect any additional pre-requested documentation.
The signed documentation was immediately sent to our underwriters. Our model is based on very quick completions, as each deal is funded using all of our own money. On rare occasions, we may request additional information.
Our average completion time for a bridging loan from initial acceptance to pay-out is fast, usually just a few days. We rarely require valuations or additional legal representation. The land registry charge will be removed once the bridging loan is repaid.
The applicant could be too old to obtain a standard high-street mortgage, as most mortgage lenders now prevent borrowing beyond what is deemed “normal retirement age”.
The property may be in a condition where it is not suitable for mortgage financing, and as such, a bridging loan could be used to complete the purchase and any required work prior to refinancing.
The applicant may have had some adverse credit, however minor, which was previously acceptable to lenders but now no longer fits the high street lending criteria.
The applicant may have difficulty proving the income requirements needed for more regular financing. This may be due to poor self-employment records, a break from work, a reduction in self-employed workloads, or overtime.
Superfast completion, often within days
Land, with or without planning 2nd charge (consent is not always required) Quick auction finance 3rd charge (consent is not always required) Adverse credit is considered 2nd charge behind the bridging lender 2nd charge behind the equity release lender Up to age 85 Pure equity-based lending Residential and commercial Valuations are not always required Loans from £25,500 A free legal option No monthly paymentsHow much does a bridging loan cost? Bridging loans can seem expensive because of high APRs. They are designed to be short-term, which is cost-effective if repaid quickly. Monthly interest can be as low as 0.5% and is added to the final payment, so no monthly payments throughout the loan period.
Interest rates can vary between lenders, depending on policies, your creditworthiness, and when you plan to repay the loan.
Bridging loans may come with additional fees:
Using a broker can help reduce these fees as they can find lenders with better terms, potentially saving money.
What property can be used as collateral for a bridging loan? Bridging loans allow you to use various types of property as security. Other than your primary residence, you can also use undeveloped land or commercial properties. The property doesn't need to be finished.
You can use the following property types for a bridging loan:
When is a bridging loan needed? Normally, for urgent needs like buying property or making business investments while awaiting long-term financing or asset sales.
Is a bridging loan a good idea? Whether a bridging loan is a good choice depends on your needs, financial situation, and the loan's purpose.
What are first and "second charge" bridging loans? Bridging loans fall into two categories: 'first charge' and 'second charge'.
The main difference is in repayment priority if there's a default. First-charge loans are repaid before second-charge loans.
How much can I borrow with a bridging loan? The amount you're eligible for depends on several factors, including the value of the security assets, lender's maximum loan-to-value (LTV; usually 75%), and your repayment exit plan. Typically, loans range from a minimum of £20,000 to a maximum of around £25 million or more.
Is a bridging loan cheaper than a mortgage? No, a bridging loan is usually more expensive than a mortgage.
How much do you need to put down for a bridging loan? Typically a 20–40% deposit is sufficient. A 100% loan might be possible but could require extra collateral and come with higher costs.
Can I get a bridging loan with bad credit? Yes, you can get a bridge loan with bad credit, though not with all lenders. You might face higher costs. Brokers can help you find suitable lenders. Applying doesn’t affect your credit score.
What are the alternatives to a bridging loan? If bridging loans aren't right for you, consider these options:
How do I find the right bridging loan for me? To find the best bridging loan:
Do bridging loans do credit checks?
Yes, most lenders perform credit checks as part of the application process, though the property is the main focus.
How to accelerate your bridging loan application process?
Communicate clearly with your lender or broker. Ask key questions early on, find out what documents are required, and when to expect underwriting details. This helps speed up the process.
We offer a quick turnaround with fast bridging loans, and in some cases, we will approve and get you the finances you need in 24 hours.
Funding is provided for all manner of development needs, from light to heavy refurbishment or a complete development build.
A bridging loan can be a good way to stop yourself from falling into bankruptcy, giving you an urgent cash injection when needed.
Business finance can be obtained through bridging finance and can be used for a variety of purposes for your business.
Consolidate your debts into one monthly payment by using a bridging loan to bring your finances back into shape.
An unexpected tax bill could create a real strain on finances. Use bridging loans to pay your taxes.
A bridging loan can be used to take your mortgage out of arrears and stop the home from being repossessed in the process.
Our quick and easy bridging loan calculator can be used to easily identify repayments on a bridging loan with just a few clicks.
Bridging loans have risen to the forefront over the last 15 years, offering a dynamic solution to expedite buying a house.
Small Business loans come in a variety of formats and are tailored to specific sorts of enterprises and their needs. Contact us for help.
Business Address: Office Block 2, Kibworth Business Park, Kibworth Harcourt, Leicestershire, LE8 0EX
Telephone: 0116 366 6338
Email: contact@ukbridgingloans.uk
