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  • •Market-leading rates
  • •Direct lender
  • •All scenarios covered
  • •Fast approval and completion
  • •Instant quotations
  • •Open 7 days until 9
  • •5* reviews

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Apply for a Bridging Loan

Being one of the top lenders for bridging loans in the UK, we strive to offer clear, concise, and professional bridging solutions. This means that when you apply for urgent bridging funding concerns, the process is streamlined for you.


Step 1: Indicative quotation

In our initial phone consultation, we will go over your specific needs, a particular situation, and potential solutions. We also provide each of our potential clients with free, objective advice. After emailing you the bridging finance loan quote, we'll move on to step 2 if you are happy with the numbers.

Step 2: Approval of DIP
Getting a decision in principle often takes an hour or two; if accepted, we will send you a comprehensive quote along with a copy of the terms.

Step 3: The process for valuing properties and applying
If needed, a valuation is ordered, and your assigned processor will get the details from you so that the application may be sent to the lender for underwriting. You will receive a complete offer after the underwriter gives its stamp of approval.

Step 4: Completing
Also called drawdown, the process of releasing funds from a loan after it has been fully completed.

 

A bridging loan is a shorter-term loan than your usual loan and can provide immediate cash flow. The most popular use is to bridge the gap between purchasing a property and waiting to sell an existing one. Bridging loans are commonly used in the following scenarios:

  • Purchasing a new home: A bridging loan can be a solution when purchasing a new home and still in possession of your current home. This particular option proves particularly advantageous if you are in need of making a prompt decision on an appealing property and wish to mitigate the risk of missing out on the opportunity.
  • Property development: Property developers commonly use bridging loans to purchase and modify residences before refinancing with a long-term mortgage or selling the enhanced property for a profit.
  • Auction purchases: When buying a property at auction, you typically need to provide a deposit immediately and settle the full purchase price within a short period, often 28 days. Bridging loans can provide the necessary funds quickly for auction purchases.
  • Break property chains: In a property chain where multiple transactions are linked, delays in one sale can affect all others. A bridging loan can help break the chain by allowing you to complete your purchase before selling your property, reducing the risk of the whole chain collapsing.

Bridging loan mortgages differ from your standard mortgage offered on the high street in terms of their shorter duration and higher interest rates. Bridging loans are usually repaid within 6 to 12 months. Borrowers are given the flexibility to either make monthly interest payments or settle the full interest amount at the end of the agreed-upon loan term.

UK Bridging Loans can help you:

  • Determine if a bridging finance loan is suitable for you.
  • Understand what form of bridging finance loan is appropriate for your condition.
  • Feel acquainted with how the procedure works and what the fees are.
Once we've determined the most appropriate sort of bridging finance for you, we will:
  • Compare rates from the entire market.
  • Negotiate the best bargain for your situation.
  • Guide you through the application process.
  • Help you organise your valuation(s).
  • Liaise with your solicitor to handle the papers.
  • Follow through on your application until the monies are in your bank account.

The various types of bridging loans explained

A bridging finance loan is a flexible and highly versatile financial product which can be tailored to meet an extensive range of business and individual requirements. However, it is important to ensure you apply for the most appropriate type of bridging finance, as there are several options available with different features and functions.

Closed bridging loan:

  • A closed bridging loan has a predetermined exit date.
  • It is ideal when you are certain about when you will receive funds, like from a property sale, and can repay the loan.
  • You generally get lower interest rates with a closed loan due to the fixed timeline.

Open bridging loan:

  • An open bridging loan doesn't have a fixed repayment date.
  • It suits situations where you are unsure about when you will receive funds, such as waiting for a property sale.
  • Interest rates are typically higher as the lender faces greater uncertainty.

First-charge bridging loan:

  • When you take out a first-charge bridging loan against your primary residence, it falls under the Financial Conduct Authority's (FCA) regulations.
  • FCA regulations ensure consumer protection, making these loans safer.
  • This is a good option if you need quick financing and want the added security of regulatory oversight.

Second charge bridging loan:

  • A second charge bridging loan is secured against a property that already has an existing mortgage.
  • It is suitable when you need additional funds and already have a primary mortgage.
  • Interest rates may be higher due to the increased risk for the lender.

Regulated bridging loans:

  • Regulated bridging loans are secured against your primary residence on a first-charge basis.
  • The term "regulated" indicates that the Financial Conduct Authority (FCA) provides enhanced consumer protection.
  • These loans offer a higher level of security and transparency, making them a safer choice for homeowners.

Unregulated bridging loans:

  • Unregulated bridging loans are secured against investment properties or used for business purposes.
  • They don't fall under FCA regulations, which means fewer legal restrictions but potentially more risk.
  • These loans are suitable for non-residential property investments and business ventures.

Commercial bridging loans:

  • Commercial bridging loans are designed for business purposes, such as property development or buying commercial real estate.
  • They can be secured against commercial properties and land.
  • Interest rates may vary based on the nature of the business and the property involved.

Bridging Loan Example

The table below shows why we offer the best bridging loans in the UK. Examples of a 12-month bridging loan taken out at a rate of 0.55% and the repayment to be expected, excluding any broker or other associated fees.


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



Below are a handful of example scenarios of how a bridge loan can be used


Downsizing to a smaller home
One increasingly common use of bridging loans is when a homeowner decides to downsize to a smaller property after having fully or partially repaid their primary mortgage. For example, the owner of a £400,000 home is considering scaling down to a more manageable £250,000 property. The challenge here is timing: they want to sell their current home to fund the purchase of their new one, but traditional mortgage lenders may not align with their schedule. This is where bridging finance comes in.
They can secure their new property quickly, often within a matter of days, using bridging finance. Allowing for a seamless transition and avoiding the risk of being beaten to the punch by a competing bidder.
Once their old property is sold, the proceeds can be used to repay the bridging loan. This approach streamlines both the moving process and the financial transaction at a cost much lower than that of a conventional mortgage.


Buying an unmortgageable property
Investors, landlords, and individuals looking to purchase unmortgageable properties routinely turn to bridging loans. Unmortgageable properties typically require significant renovation work to be considered habitable or have unconventional features that deter traditional lenders. But they can also be highly attractive investment opportunities due to their potential for value appreciation.
High-street banks and mainstream mortgage lenders will rarely (if ever) finance properties not considered habitable at the time. Bridging loans cover this financing gap, providing flexible funding for non-standard property acquisition and renovation.
This enables buyers to seize the opportunity to purchase affordable homes and commercial lots, renovate them, and sell them on at a profit.


Purchasing properties at auction
Auction property purchases appeal to a broad range of buyers due to their potential for quick equity gains. Bridging loans are ideal in such scenarios, where prompt payment is essential. Auctions provide businesses and private buyers with the unique chance to secure properties at rock-bottom prices, but successful bidders typically need to pay the full balance within 28 days.
This timeframe can be challenging (if not impossible) to meet with conventional mortgages. Bridging loans, which can be underwritten and authorised within a few days, enable buyers to complete their purchases well before this four-week deadline.
Buyers can then explore more traditional options to refinance their property or make the necessary improvements to enhance its market value.


Covering private care costs
Selling the home you live in is the most common solution for raising the funds needed to pay for permanent care. However, this is not always straightforward in time-critical scenarios, as preparing a home to be listed on the market and securing a subsequent sale can take several months.
In urgent situations, bridging loans can "bridge" the problematic gap between covering care costs and selling a property for the best possible price.
Bridging finance, secured against residential property, provides near-immediate access to the high-value funding needed to cover care expenses. It is a fast and effective solution that ensures that your care or that of your loved one is not compromised.


Commercial development and construction projects
Development bridging loans and construction loans are tailored to the specific needs of commercial developments and construction projects. They can be used for the ground-up construction of new properties, renovations of existing properties, repurposing structures, land development, and more.
High-value bridging loans of up to £25 million or more can be ideal for covering the total costs of many types of development projects, where short-term completion or refinancing is the developer’s aim.

How it works

get-in-touch
Get in touch

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.

home-valuation
Fast approval

An immediate yes or no answer is given, and if suitable, a quotation is formulated and forwarded to the client, usually by email.

fast-approval
Formal offer

A formal offer is produced for any client wishing to proceed and forwarded for signature, again, usually by email.

representative-visit
Representative visit

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.

underwriting
Dedicated underwriting

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.

access-funds
Payment of funds

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.

Who can use bridging finance?

people

Age

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”.

property-condition

Property conditions

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.

credit

Credit

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.

income

Income

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.

USP's

  • cloud Superfast completion, often within days
  • cloud Land, with or without planning
  • cloud 2nd charge (consent is not always required)
  • cloud Quick auction finance
  • cloud 3rd charge (consent is not always required)
  • cloud Adverse credit is considered
  • cloud 2nd charge behind the bridging lender
  • cloud 2nd charge behind the equity release lender
  • cloud Up to age 85
  • cloud Pure equity-based lending
  • cloud Residential and commercial
  • cloud Valuations are not always required
  • cloud Loans from £25,500
  • cloud A free legal option
  • cloud No monthly payments

Frequently asked questions

How much does a bridging loan cost?
While bridging loans may have seemingly high APRs, they are short-term solutions, making them cost-effective when repaid promptly. Monthly interest can be as low as 0.4% on some bridging loans, which are usually 'rolled' into the final payment, so no monthly instalments are needed in the interim.

Interest rates vary significantly from one lender to the next, based on their own unique lending policies, the creditworthiness of the applicant, their planned repayment date and method, and more.

Bridging loans may involve additional fees:

A broker can help minimise or avoid certain fees, as they have industry insights and can identify lenders with favourable terms. Working with a broker may lead to cost savings during the loan process.

What property can be used as collateral for a bridging loan?
The great thing about bridging loans is that you can use multiple types of property for your security. While it’s very common to use your primary residence, you can also use undeveloped land or commercial property. Since the property doesn’t have to be finished to act as security for a bridging loan, it makes it really easy to finance using the property that you have.

The types of property that you can use as security when obtaining a bridging loan include:

When is a bridging loan needed?
A bridging loan is a short-term financial product that enables borrowers to 'bridge' temporary gaps in their finances. They are typically used to cover time-critical needs such as property purchases or business investments while awaiting long-term financing or the sale of assets.

Is a bridging loan a good idea?
Whether or not a bridge loan is a wise choice will depend on your particular needs, financial situation, and the purpose of the loan. Bridging loans are often short-term financing arrangements used to "bridge" the gap between purchasing a new property and selling an existing one.

Can anyone get a bridging loan in the UK?
All people or businesses who require short-term financing to bridge a gap between the acquisition of a new property and the selling of an existing one can apply for bridging loans.

What are 'open' and 'closed' bridging loans?
Bridging loans come in two main types: 'open' and 'closed'.

In both cases, demonstrating a solid exit strategy is crucial for loan approval.

What are first and "second charge" bridging loans?
Bridging loans can be categorised into 'first charge' and second-charge loans.

The key difference is the priority of repayment in cases of default. First-charge loans are paid off before second-charge loans.

How much can I borrow with a bridging loan?
The exact amount you are considered eligible for will be calculated on the basis of multiple factors, such as the value of the assets you provide as security for the loan, the lender’s maximum LTV (which is usually 75%), the strength of your exit strategy, and so on.

A minimum loan amount of £10,000 and a maximum in the region of £25 million or more are usually the norm.

Is a bridging loan cheaper than a mortgage?
No, a bridging loan is generally not cheaper than a mortgage. Bridging loans are designed for short-term financing needs, often to bridge the gap between the purchase of a new property and the sale of an existing one.

How much do you need to put down for a bridging loan?
A 20–40% deposit is usually required for a bridging loan. A 100% bridging loan may be obtained without the need for a deposit, but this may require additional collateral to secure the loan, and there may be stricter requirements and increased expenses.

Do you pay a bridging loan monthly?
Lenders view bridging loans as very risky, thus they want a clear exit strategy regarding loan repayment. Typically, this involves refinancing or selling a property. This does imply that, at the conclusion of the term, the loan is paid back in full.

Can I get a bridging loan with bad credit?
Yes, you can secure a bridging loan with bad credit. However, not all lenders are willing to consider applications from individuals or businesses with poor credit, and you may face higher overall borrowing costs if your application is successful.

Brokers can assist in finding suitable 'subprime' lenders. Importantly, applying for a bridging loan won't impact your credit score, making it a low-risk option to explore.

What are the alternatives to a bridging loan?
If bridging loans aren't the best fit, consider alternatives:

How do I find the right bridging loan for me?
To secure the right bridging loan and the best possible deal:

How long does a bridging loan take?
The complexity of the transaction, the responses of the parties involved, and the lender's efficiency are some of the variables that can affect how long a bridging loan process takes. Generally speaking, bridging loans are designed to offer short-term funding rapidly, and the application process is often quicker than with standard loans.

Do you pay stamp duty on a bridging loan?
The valuation of the property, the loan-to-value (LTV) ratio, and the lender's policies all affect how much you can borrow on a bridging loan in the UK. Bridging loans are generally used for short-term financial needs and have higher interest rates than standard mortgages in the UK.

Do bridging loans do credit checks?
Yes, credit checks are typically performed by the majority of lenders who offer bridging loans as part of the application and approval process. Although the property is the primary consideration for bridging loans, lenders may still assess the borrower's creditworthiness to some extent.

How can I locate the best bridging loan for me?
Here is our top advice for finding the perfect bridging loan:
Be sure about what you need from your financing. Before you start looking, figure out how much you want to borrow and for how long. Bridging loans are expensive; thus, the shorter the time, the less you will pay.
Know your circumstance. Lenders will want to know about your circumstances, so be sure you have all of your answers prepared. Questions you can expect include:
- How much is the property valued at?
- Do you have a mortgage? If so, what amount do you owe?
- What amount of equity do you have in your property?
- What are your monthly income and expenses?
Do your research. There are several loans accessible, so be sure to examine different financing options. Some, such as low-interest loans, may be far less expensive than bridging loans, and there may even be interest-free options available. If you decide on a bridging loan, consult with a bridging loan broker who can do the market research for you. Brokers frequently have access to unique pricing and offers, but they often charge a fee for their services.
Read the fine print. Check to see what costs are included before signing on the dotted line. Try to apply for loans that have a higher chance of approval. We are able to provide loans from a wide range of lenders all over the UK, and we’re sure to find you the very best deal.

How to Accelerate Your Bridging Loan Application Process?
Efficiency is paramount, and the secret lies in proactive communication with your lender or broker. Delays often stem from unclear requirements, so establishing clarity from the outset is crucial. For instance, consider asking these pivotal questions: Is a comprehensive valuation report necessary? If so, inquire about scheduling the appraisal and the expected timeline for receiving the complete report. Are full searches mandatory, or would a search indemnity policy suffice? What documentation is essential to validate my exit strategy? When can I expect a comprehensive list of underwriting prerequisites? By addressing these queries early on, you pave the way for a smoother and swifter application process.

Bridging loan uses

Contact Details

pinBusiness Address: Office Block 2, Kibworth Business Park, Kibworth Harcourt, Leicestershire, LE8 0EX

callTelephone:  0116 366 6338

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