Specialist

Bridging Loan Good or Bad

Bridging Loan Good or Bad

Clifton private finance

We specialise in arranging bridging finance for a variety of residential and commercial property transactions throughout the UK

Bridging loans have become an increasingly popular choice for those who need to source finance quickly.

As a specialist property finance broker we can provide:

  • Market leading bridging loans from £50,000 to £25m
  • Rates from 0.55% pm
  • Lower rates for £1 million+ loans
  • Finance within 7 working days is possible, depending on your circumstances
  • Terms from 3 months to 3 years
  • LTVs up to 80% (can be more if other assets in the background)
  • Interest roll-up options
  • Residential (On a regulated basis), buy-to-let, HMO, investment and commercial properties considered
  • Light refurbishment finance (currently uninhabitable, under permitted development rules, require internal refurbishment)
  • Heavy refurbishment finance (extensions, basement digs, loft conversions, commercial to residential, barn conversions)
  • Bridging finance for business purposes (Pay HMRC tax bill, purchasing land or new premises, deposit for new purchase, business growth)
  • Alternative assets considered e.g. pension, investment porfolios, fine art, classic cars
  • Automated valuation option for properties under £1m
  • We provide a friendly, professional service to help you get the money you need at the best available rates
Below, we look at the advantages and disadvantages of bridging finance for property transactions.
Call us on 0117 959 5094 to discuss your requirements.
Recent

Property Finance Deals

Bridging Loan to Fund Multiple Renovation Projects | Case Study
£950k Bridging Loan to Fund Multiple Renovation Projects
Area
Swindon
Capital Raised
£950k
Bridging Loan and Refinance Arranged for Large Self Build | Case Study
Bridging Loan and Refinance Arranged for Large Self Build
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Milton Keynes
Capital Raised
£225k
Bridging Loan with Multiple Drawdowns Secured for 18-Bed HMO Conversion
Bridging Loan with Multiple Drawdowns Secured for 18-Bed HMO Conversion
Area
Kent
Capital Raised
£1.2m
Case Study: Complex Bridging Loan for Spanish Villa in Just 6 Working Days
Complex Bridging Loan for Spanish Villa in Just 6 Working Days
Area
Staffordshire
Capital Raised
£1.48m
Case Study: 24 Month Bridging Loan Secured Against £23m London Home
24 Month Bridging Loan Secured Against £23m London Home
Area
London
Capital Raised
£6.5m
Fast Bridging Loan to Raise Deposit for a Larger Family Home
Fast Bridging Loan to Raise Deposit for a Larger Family Home
Area
London
Capital Raised
£215k

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Bridging Loan Service

What is a bridging loan?

Bridging loans are a type of fast, short-term finance that gives individuals and businesses the freedom to act quickly when time is paramount.

A bridging loan may be used when:

Advantages

Fast Finance: It is possible to secure finance through bridging loan providers within 5 to 7 working days, as opposed to through traditional lenders that may take up to several months. Bridging loans may be more suitable than other forms of finance when funding is required within a tight time scale.

Short-Term Finance: A bridging loan is a type of short-term funding, usually with a finance term between 1 to 36 months. This may be an advantage because, unlike traditional funding such as mortgages, an individual or business can repay a bridging loan quickly and not incur early repayment charges.

Exit Strategy: Generally, lenders will only agree to provide bridging finance if a clear exit strategy is in place. This may benefit individuals and businesses, as it ensures that they have a detailed plan to facilitate repayment and minimises the likelihood of defaulting on the loan.

'Roll up’ interest: There is usually an option to ‘roll up’ the interest of a bridging loan to repay at the end of the finance term. If the exit strategy is executed effectively, the borrower may be able to pay off the entire loan at the end of the finance term to avoid monthly interest payments. This gives the borrower the freedom to use their money to progress the project to completion.

Disadvantages

Temporary Solution: Bridging loans provides a temporary cash flow solution or ‘bridge’ before additional permanent finance becomes available. Therefore, bridging loans are not appropriate for long-term financial solutions.

Arrangement fees:  To access development finance quickly, it is likely that borrowers will have to pay arrangement fees, which are typically 1% to 2% of the overall loan.

Interest: The interest rates charged on a bridging loans are higher than longer-term borrowing rates you would typically get on a mortgage. Therefore, in securing short term finance you need to be comfortable with the additional cost.

Exit fees: Bridging loans sometimes come with an exit fee, which may be up between 1% and 2% of the capital borrowed. Not every lender will charge an exit fee, therefore for those looking for a bridging loan, it is advisable to contact a specialist property finance broker.

How to get a bridging loan

To find out more about your finance options, call us today on 0117 959 5094 or use our contact to get in touch.
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Get in Touch

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