What is a Bridging Loan?

A Bridging Loan is a type of short-term property-backed loan. As with long-term commercial mortgages, they are secured by a first or second charge against the property. As they are secured, then similar to long-term loans, the same steps in terms of valuation and legal charge must be completed.

Bridging loans are designed to be arranged quickly and to run for a 1-24 month duration. There are different types of loans depending on what you need: 

  • Retained Interest – Interest is taken from the loan balance at the start of the term, with the option to pay back the balance at any time, usually with no exit penalties. Because interest payments are already taken from the loan balance, there are usually no affordability checks.
  • Serviced Interest – Interest is paid by the borrower on due dates. 

How a Bridging Loan can be used

Bridging loans can be used to help businesses or individuals bridge the gap between making a purchase and other funds becoming available. They can also be used in any of the following circumstances:

Fast finance, quick decisions.

  • Borrow £50K to £25 million

  • Receive your loan in less than 48hrs

  • Borrow up to 75% of the value of your property

  • Highly competitive rates

  • Specialist Broker Team

  • Adverse Credit Considered

     

To get a quotation and find out if a Bridging Loan is right for you please get in touch and one of our network agents will be happy to help.