Looking for short term finance to purchase a property?
Use our UK bridging loan calculator to get an indicative quote.
We will send this to your email and mobile for future reference.
The fields above make certain assumptions. The good news is that you can change the rate of interest in line with the loan to value you require using the rates mentioned above to give you a more accurate indicative quote.
Please note that if you enter a 12 month term for the loan the overall cost will assume that you pay interest over the full term. It is often the case that bridge loans are paid off before the full term - as mentioned above you only pay interest for the time you use the loan.
The minimum loan term is one month. After the initial 30 days you will only pay interest up to the day you pay the loan back.
A bridging loan is secured finance and the cost of it will depend on a number of factors.
Loan to value - this is the ratio of total borrowing to total property value. The lower the LTV generally the lower the rate of interest you will pay on the loan. If more than one property is involved securing a bridging loan over two properties may allow you to reduce the loan to value and therefore the overall cost of the loan.
Property location - This is a factor, particularly for properties in more remote areas of the UK. This is particularly true of north Scotland and Northern Ireland when it comes to residential property purchase. The more remote the property the more risk there is to a lender that you may not be able to provide an exit for the bridging finance so this may be reflected in the interest rate you pay.
Regulated or unregulated? - If the property is for personal use then it will fall under regulated lending governed by the FCA (Financial Conduct Authority). There are fewer regulated lenders in the market so in certain situations your options may be more limited. Regulated lending is highly competitive so the good news for borrowers for loan to values below 60% the rates currently are as low as they ever have been.
Lender fees - Bridging loan lenders will typically charge a facility arrangement fee of 2% which is based on either the net or gross loan. For most of the lenders we use the lender fee will be based on the net loan. Lenders may also charge a loan drawdown fee - typically £295. This fee can vary depending on the number of properties involved. When your loan is redeemed there will also be a redemption fee. This is the cost of removing a legal charge from your property (ies) and will be typically £120.
Legal costs - A bridging loan transaction like a mortgage requires solicitors to complete the legal charge paperwork. The lender will have their own solicitor who will have their fees and you will also be required to have a solicitor to represent you. Legal fees can vary, and will depend on the complexity of the transaction.Some bridging lenders provide dual representation which can reduce the overall cost.
Survey fees - As with any loan secured lending on an asset the lender will generally want an independent valuation. Most UK bridging loan lenders will appoint a surveyor from an agreed panel. The cost will depend on the lender but most work to a scale based on property value. For some lenders we work with provide what is called a desktop valuation (typically for properties valued under £1 million) which are not only quicker but are cheaper as well.
Broker fees - We charge a broker fee typically of £995 for arranging finance on your behalf.
Loan exit fees - The lenders we use rarely apply an exit fee. If they are charged it will be payable on the redemption of the loan and can be anything from 1% to 2%. Our calculator has this field set at 0% as this type of fee if it is included typically applies to higher risk lending on investment land/property transactions.
Interest depending on the bridging finance provider can be calculated in different ways.
We work with lenders where you have the option of rolling up the interest on the loan so there is no requirement to service the loan.
This can be very attractive for cash flow. In this situation interest is added to the loan balance every month.
When you pay off the short term loan the redemption repayment will comprise of the original capital and the accrued monthly interest.
If you are buying a property before selling an existing one it may be possible to reduce the cost of finance by using more than one security property. By securing the bridge over multiple properties the overall loan cost may be reduced. If you have an outstanding mortgage on a property you are using as security this will be factored into the overall loan to value calculation.
We are independent company registered in England and we are regulated by the Financial Conduct Authority. We have access to the best loan rates in the market for both authorised and regulated lenders as well as private lenders for unregulated transactions where speed is often of the essence.
We know the short term finance market very well and we can find the right finance for your situation. If you need a longer term finance to replace bridging finance we can arrange that for you. Our calculator is a useful tool to get an indicative quote but we recommend talking to us about what you are trying to achieve to get a bespoke quote for your requirements.
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.
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.
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.
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.
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.
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.
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.
I have received fantastic service from your company from my first moment of contact. Adam Arnott has been dealing with my application and has kept me informed throughout the normally stressful process.