Specialist

Bridging Loans

 

Bridging Loans

Clifton private finance

We specialise in raising bridging finance on residential and commercial property transactions in the UK & Europe

Our bridging loans service provides:
  • Market leading bridging loans from £50,000 to £25m
  • Monthly interest rates from 0.44% pm
  • Lower rates for £1 million+ loans
  • £99 valuation option for properties up to £1 million
  • Terms from 3 months to 3 years
  • LTVs up to 80% (can be more if other assets in the background)
  • Interest roll up options
  • Rebridge loan options
  • Residential bridging downsizing and upsizing finance for UK and foreign property purchase, chain breakingbuy to let, HMO, investment and commercial properties considered
  • Light refurbishment loans (currently uninhabitable, under permitted development rules, require internal refurbishment)
  • Heavy refurbishment loans (Change of use, Extensions, basement digs, loft conversions, commercial to residential, barn conversions)
  • Development bridging loan solutions
  • Bridging loans for business purposes (Pay HMRC tax bill, purchasing land or new premises, deposit for new purchase, property portfolio purchase, business growth)
  • We can help if you are a UK expat needing short term finance to secure a residential or investment property back in the UK. We can help with bridging loans for non UK citizens we can help if you are looking to fund investment property
  • Alternative non bricks and mortar asset backed bridging loans considered (£1m + ) e.g. pension, investment porfolios, jewellery, fine art, classic cars
  • We provide a friendly, professional service to help you get the money you need at the best available rates

Residential

Buying Before Selling?

Residential Bridging Rates from

0.48% pm

Downsizing/Upsizing

Releasing Funds From Your Home

Short Term Lease Finance

Auction Purchase

As at March 2019

Development & Refurb

Fast Finance

Developer Rates from

0.38% pm

Ground Up Development

Light & Heavy Refurb

Finance For Unmortgageable Properties

Land Purchase

As at March 2019

Commercial

For Business Purposes

Commercial Rates from

0.43% pm

Fund Business Growth

Property Purchase

Business Opportunities

Auction Purchase

As at March 2019

Contact Us

Thank You for your interest - please complete the form below and a member of our team will be in contact.


We can help with meeting tight deadlines & provide a fast and professional service.
Call our team on 0117 959 5094 to discuss your requirements.
Recent

Property Finance Deals

Superfast second charge regulated bridging loan for contractor/developer
Area
Essex
Capital Raised
£120K
Finance for Lincolnshire Class Q barn conversion into 2 dwellings
Area
Leicestershire
Capital Raised
£660K
No-drama downsize with bridging finance to pay for renovations
Area
Oxfordshire
Capital Raised
£200K
Short-term finance to complete Lancashire barn conversion
Area
Lancashire
Capital Raised
£190K
Buy to let mortgage on portfolio not passing income stress test
Area
Kent
Capital Raised
£580K
Superfast exit to a mortgage from short-term borrowing
Area
SE London
Capital Raised
£862K

More Opportunities »

Contact Us

BRIDGING LOANS

Why Use Our Bridging Loan Service?

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:

Call us on 0117 959 5094 to discuss your requirements.

What are bridging loans?

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.

How do bridging loans work?

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 

What are the costs of a bridging loan?

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 a bespoke quote it is important that you speak to a specialist broker to assess your situation in full.

What is the criteria for a bridging loan? 

The options available to you will depend on whether the loan you require is regulated or non regulated.

Non regulated bridging loan criteria

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

Regulated bridging loan criteria

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
0.44% 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

What is a regulated bridging loan?

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.

Examples of this include:

/bridging-loan-case-studies/

What is a unregulated bridging loan?

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;

Light Refurbishment Loans

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:

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.

Heavy Refurbishment Loans

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.

Examples of this type of finance include:

Business Bridging Loans

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:

What is a second charge bridging loan?

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;

Call us on 0117 959 5094 to discuss your requirements.

Residential

Buying Before Selling?

Residential Bridging Rates from

0.48% pm

Downsizing/Upsizing

Releasing Funds From Your Home

Short Term Lease Finance

Auction Purchase

As at March 2019

Development & Refurb

Fast Finance

Developer Rates from

0.38% pm

Ground Up Development

Light & Heavy Refurb

Finance For Unmortgageable Properties

Land Purchase

As at March 2019

Commercial

For Business Purposes

Commercial Rates from

0.43% pm

Fund Business Growth

Property Purchase

Business Opportunities

Auction Purchase

As at March 2019

Contact Us

Thank You for your interest - please complete the form below and a member of our team will be in contact.


What Our

Clients Say

Latest

Property Finance Deals & Insight

UK mortgages for South African residents: expats and SA nationals
We can set up property finance for expat British nationals working in South Africa, as well as Britons and South Africans working ...
05-12-2019
UK mortgages for UK expats in Saudi Arabia, and Saudi nationals
We’re experienced in arranging finance for UK property purchases for British nationals living in Saudi Arabia, and any buyer...
02-12-2019
Property development project behind schedule? How to refinance to avoid penalty rates
Good planning and rigorous project management can’t insure against a month of torrential rain, or a key supplier failing to ...
28-11-2019
Living in Switzerland?  5 ways we’ll help you with your UK mortgage finance
Don’t pay a penalty because you’re trying to organise a mortgage from Zurich or Geneva. We can arrange the best expat ...
20-11-2019
View More »
Get in Touch

If you have any questions about our services or want to start making things happen please contact us