Specialist
Bridging Loans
Rates from: Downsizing/Upsizing Releasing Funds From Your Home Short Term Lease Finance Auction Purchase As at September 2020 Rates from: Ground Up Development Light & Heavy Refurb Finance For Unmortgageable Properties Land Purchase As at September 2020 Rates from: Up to 80% LTV Minimum Loan £500k Minimum Income £100k Serviced monthly interest required As at September 2020
Residential
Buying Before Selling?
0.43% pm
Development & Refurb
Fast Finance
0.38% pm
Residential
Large Bridging Loans
0.175% pm
Clifton Private finance are a specialist finance broker providing outstanding mortgage and short term finance solutions to UK and International clients. Our registered office is Bristol but we have offices in London & Cardiff.
Our service offers:
We can help make your property transaction happen!
We can access some of the best rates in the market from 0.43% pm
Need to move quickly - We can help get you fast bridging finance
Excellent customer service
Where longer term funding is required to replace bridging finance we can help put this in place for you
Bridging loans are a specialist kind of short term loan designed solely to provide a temporary cash flow solution which allows you to "bridge the gap’ before additional permanent finance becomes available.
The method for obtaining a bridging loan is straightforward and really versatile with a more flexible set of criteria than is usually required by most high street banks and mortgage lenders. Like a mortgage, a bridging loan is secured against your property.
With bridging a realistic and viable exit will be required by the lender.
Bridging loans are frequently utilized as an answer to a temporary cash flow problem.
A common example of this type of situation is when a person wishes to buy a property but still needs to sell their existing home. A bridging loan can, in these circumstances, provide a solution by offering short-term funding. In this situation a loan could be secured on both the existing property and the property to be purchased - this can keep the cost of the borrowing down as by providing two securities a lender will be able to offer a more beneficial rate of interest.
As part of the due diligence in assessing whether bridging finance is right for you, an assessment will need to be made of how the loan will be repaid. For residential purchases this will typically be from the sale of the existing home, and if this is not enough to cover the balance then a standard residential mortgage will be need to be put in place - a decision in principle from a mortgage lender taking into account income and credit history will need to be arranged to ensure that an exit can be facilitated and the long term mortgage is affordable.
Bridging funding may be offered in loan amounts ranging from £25,000, depending on your circumstances and which bridging lenders you approach.
For bridge loans in excess of £750,000 click here for more information on large bridging loans
By its nature short term finance is more expensive than longer term finance (mortgage).
It is important to see bridging finance as a means to an end providing a solution for a short term funding gap.
There will be a lender arrangement fee which is typically 2% of the loan. This fee is usually added to the loan. Interest is calculated monthly and the rate you pay will depend on the loan to value (LTV) although for non regulated bridging other factors such as location, property type, and how the exit is to be achieved will also be variables in determining how much interest you will pay. For some unregulated bridging loans a lender depending on the situation may charge an exit fee which could range from 1% to 2%.
With bridge finance interest payments are accrued monthly but in most cases only paid back at the end of the loan term. So the good news is that you do not have to service the monthly interest rate payments. As bridging is secured lending there will be administration fees - solicitors will need to get involved in ensuring that the legal conveyancing is done correctly - legal costs will be similar to what you would pay for a mortgage. There will also be valuation fees carried out by an independent surveyor. If you use the service of Clifton Private Finance a broker fee will be charged.
For bridging loan lenders we work with you only pay interest for the time you use the loan facility. So if you take out a 12 month bridge loan but because your existing home is sold after 6 months and the loan is repaid off at that point, you will only pay interest for the 6 month term.
To get an indicative feel of the cost of a bridging loan use our bridging loan calculator which will give a you a quick quote sent to you as an email. For more information on how costs are broken down see our bridging loan cost guide
For a bespoke quote it is important that you speak to a specialist broker to assess your situation in full.
The options available to you will depend on whether the loan you require is regulated or non regulated.
| Item | Terms |
| Type of bridging finance | Unregulated |
| Max Loan To Value | 80% LTV Residential & 70% Commercial |
| UK Areas covered | England, Wales, Scotland & Northern Ireland |
| Europe | From £1m - Germany, Spain, Netherlands, Switzerland, Austria, Monaco |
|
Loan Term
|
1-24 months |
|
Minimum Loan Size
|
£50,000
|
|
Maximum Loan Size
|
No maximum |
|
Minimum interest
|
0.44% pm |
|
Interest treatment
|
Rolled, Retained or Serviced |
| Borrower residency | UK residents, UK expats, Non UK Nationals (Limited Options For UK Property) |
| Borrower Type | Individual, Sole Trader, LLP, Partnership, Ltd Company |
| Security Types | Residential, commercial & semi commercial property (1st & 2nd Charge) |
| Funding for: | New builds; Refurbishment; Conversions; Grade listed buildings; Mixed schemes |
| Planning Permission Needed | Case By Case |
| Item | Terms |
| Type of bridging finance | Regulated |
| Max Loan To Value | 75% LTV Residential |
| UK Areas covered | England, Wales & Scotland |
|
Loan Term
|
1-12 months |
|
Minimum Loan Size
|
£50,000
|
|
Maximum Loan Size
|
No maximum |
|
Minimum interest
|
0.43% pm |
|
Interest treatment
|
Rolled, Retained or Serviced |
| Borrower residency | UK residents, UK expats |
| Borrower Type | Individual, Sole Trader, LLP, Partnership, Ltd Company |
| Security Types | Residential (1st & 2nd Charge) |
| Funding for: | New builds; Refurbishment; Conversions; Grade listed buildings; Mixed schemes |
| Planning Permission Needed | Case By Case |
Typically this is where you require short term finance for a property that you are going to live in or where the security property is your existing home. This type of finance has a maximum 12 month term.
Purchasing a residential property before selling your current home - Downsizing or upsizing property where you need to move quickly is a common scenario where proof of funds to purchase is required by the vendor or their agent. Where speed is often the key to winning the deal a bridge loan which can be arranged quickly can make all the difference.
Breaking a mortgage chain - If you are stuck in a mortgage chain with no resolution in sight bridging finance can provide a solution if the person you are buying from starts to get impatient - We can provide a same day decision in principle to lend.
Buying a residential property at auction - Typically you have 28 days to come up with funds when buying a residential property at auction. Bridging finance is perfect for this type of timescale.
Typically this is where the security property is an investment property & where there is no intention to reside in the property (ies) in question. The period of time on which funding can be arranaged can range from 1 month with some bridge lenders offering open ended funding with no set repayment term.
There are a variety of scenarios where you may require funding for an investment property including;
Where bridging finance is required for properties where no planning permission or building regulations are required. Or where there is no change to the overall use or nature of the premises. Examples of this include:
Uninhabitable property - Where standard mortgage companies will not lend on a property that is uninhabitable a bridge loan can be a good way of providing the light refurbishment required to allow long term finance to be put in place
Under "Permitted Development Rules" - light refurb or renovation short term finance can provide the funding required to allow a change of use e.g. offices into residential flats
Wind and watertight - Can provide finance that allows properties that are "wind and watertight" to be taken through to completion
Internal redecoration - Funding for internal refurbishment to finance redecoration and fitting a new kitchen, bathroom etc
Being able to move quickly is often the difference in securing a property. A bridging loan can make the difference. Call our team to discuss what finance you need.
Where bridge loan finance is required for properties where planning and or building regulations are required. Or where there is a change of use in the nature of the building premises.
Basement excavations/digs - Work of this nature often has structural implications but can add significant value to a property.
Loft conversions - In the search for more space many developers are converting loft space to get more value out of property.
Property extensions - Increasingly a simple way to add value
Single unit to multi unit - conversion to flats or HMO
Multi unit to single unit - will depend on property
Barn conversions - bespoke deals for unusual properties
Commercial to residential use - a growing area for developers, particularly converting light commercial property
Where a property or land is being purchased for business purposes bridging finance can be a useful tool if speed is of the essence. A lender may be happy to either lend on the asset in question or on the strength of the business balance sheet. Situations where short term finance may be necessary include:
A second charge bridge loan could be on a regulated on unregulated basis.
Where property has an existing mortgage (first charge) capital can be raised for;
Home improvements - e.g. Extensions, loft conversions
Deposit for second property purchase - e.g. investment property such as a buy to let
Business purposes - e.g. funding new business property
Tax Bill - e.g. Inland Revenue bill for CGT
Purchasing land or development finance - To add additional property onto existing plot
Rates from: Downsizing/Upsizing Releasing Funds From Your Home Short Term Lease Finance Auction Purchase As at September 2020 Rates from: Ground Up Development Light & Heavy Refurb Finance For Unmortgageable Properties Land Purchase As at September 2020 Rates from: Up to 80% LTV Minimum Loan £500k Minimum Income £100k Serviced monthly interest required As at September 2020
Residential
Buying Before Selling?
0.43% pm
Development & Refurb
Fast Finance
0.38% pm
Residential
Large Bridging Loans
0.175% pm
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
James M
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
William W
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Chantelle S
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
Myr B
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
C Jefferey
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
Mr Morris
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
Charles N
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.
Rowena C
.jpg "How to Get a Limited Company Buy to Let Mortgage")
.jpg "Living in Hong Kong? 4 Ways A British Expat Can Get A UK Mortgage")