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Northern Ireland Bridging Loan Service
Getting a Bridging Loan in Northern Ireland
- Bridging Loan Uses
- What are the Challenges?
- Bridging Loan Regulations
- Lenders in Northern Ireland
- Property Location Challenges
- Bridging Loans Costs
- What are the Requirements?
- How does the Application Process work?
- Bridging Loan Broker Help
- Need a Bridge Loan in Northern Ireland?
Northern Ireland Bridging Loan Service:
We can help developers get the right finance for a bridging loan in Northern Ireland.
- Bridging finance from £200,000
- Market leading rates
- Bridging loans up to 100% of development finance cost
- Finance with no exit or early redemption fees
- Options for inexperienced developers
- Joint venture finance options
- 2nd charge options
- Terms up to 24 months
- Complex cases always considered
- Finance for a variety of ownership structures including multiple SPV's, Offshore SPV's, UK based trust structures, overseas trust structures
- Finance for new build, conversion or refurbishment developments including mixed use and student accommodation
- We can help source finance for land, commercial to residential conversions, unusual assets such as care homes, golf courses, places of worship, petrol stations, fisheries, air rights (with acceptable security) and charities
Recent bridging loan rates we've secured for clients:
Finance Rates from 1 - 18 months Rates up to 80% LTV net As at 20th June 2023 Finance Rates from Up to 24 months Rates up to 70% of GDV As at 20th June 2023 Finance Rates from 1 to 18 months Rates up to 80% LTV net As at 20th June 2023 Thank You for your interest - please complete the form below and a member of our team will be in contact.Flipping Property?
Buying, Renovating & Selling (or Letting)
0.55% pm
Ground Up Development
New Builds
0.83% pm
Existing Development?
Refinance & Exit Finance
0.55% pm
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Bridging Loan Experts You Can Trust
Clifton Private Finance has established itself as a leading specialist in UK bridging loans. Our advisers offer unrivalled expertise in navigating the complexities of short-term property finance.
Don’t just take our word for it, in 2022 we received two prestigious bridging service awards.
And our expertise also earned us the title of Bridging Broker of the Year for 2023.
As dedicated bridging loan specialists, we provide:
- Access to exclusive lending partners offering the most competitive bridge loan rates
- Strategic loan structuring to match complex needs
- Smooth handling of applications from start to finish
- Constant communication and support throughout your loan term
With in-depth understanding across every aspect of bridging finance, we simplify the process to help you secure the ideal loan for your property goals. Our award-winning service delivers results you can trust.
Sam O'Neill
Head of Bridging
Let us do all the hard work of finding the right bridging lender for your circumstances.
We secure bridging finance for applications of all types, and we negotiate competitive lending to meet your needs and timescale.
Full Guide - Getting a Bridging Loan in Northern Ireland
Bridging loans can be an effective short-term financing solution for property purchases or development projects in Northern Ireland.
However, there are some important considerations when seeking a bridging loan in NI that differ from other parts of the UK.
Currently, lenders will only look at unregulated bridging loans in Northern Ireland.
Meaning regulated loans like residential bridging loans, or bridge loans to purchase a home cannot be sourced by lenders in Northern Ireland.
A bridging loan is regulated if you have lived in, are living in or are intending to live in the property at some point. An unregulated bridging loan can be used for commercial or investment property, such as buy to let bridging finance.
As experienced bridging loan brokers, we have created a comprehensive guide to walk you through the process, requirements, and challenges of obtaining a bridging loan in Northern Ireland.
To find out if you're eligible for a bridging loan in Northern Ireland, book a free call with our experts today.
Written by: Sam O'Neill & Sam Hodgson
Last Updated: 16/11/2023
What Are Bridging Loans Used For?
Before we look specifically at Northern Ireland, let’s first take a look at bridging loans in general. A bridging loan is a short-term loan secured against a property that is used when financing is needed quickly before longer-term financing can be arranged.
The most common uses for bridging loans in Northern Ireland include:
- Property Purchases - Bridging finance enables quick completion when buying a new property before selling your current home.
- Auction Purchases - Bridging loans allow property buyers to complete purchases from property auctions within tight deadlines.
- Refurbishments - Money can be accessed quickly to fund renovations to improve a property before selling or remortgaging.
- Debt Consolidation - Bridging loans can pay off higher interest debts as part of an exit strategy.
- Capital Raising - Property developers use bridging loans to access finance quickly for new projects before selling existing properties.
Bridging loans provide fast access to capital, which is essential for time-sensitive property transactions or renovations. The loans are secured against the property and then repaid once longer-term financing is arranged.
Challenges Getting a Bridging Loan in Northern Ireland
Let’s look at some of the key differences for bridging loans in NI, and some of the challenges. While bridging loans are available in Northern Ireland, there are some roadblocks compared to other UK regions. Here’s a brief overview:
- Limited Lenders - There are fewer active bridging lenders compared to the UK. This reduces competition and options.
- Higher Interest Rates - Typical interest rates in Northern Ireland can be higher than the UK average due to the smaller market and perceived risk.
- Stricter Lending Criteria - Lenders have tighter approval criteria related to exit strategies, property values and borrower eligibility. Solid exit plans are essential.
- Lack of Regulation - Bridging loans in NI are unregulated, although reputable lenders still adhere to responsible lending practices.
- Bank Reluctance - Mainstream lenders can be reluctant to provide bridging loans in Northern Ireland.
These factors restrict options and access to bridging finance. Thankfully, working with an expert broker, like us at Clifton Private Finance, can help you overcome these barriers.
Bridging Loan Regulations in Northern Ireland
Let’s look at some of these challenges in a little more detail. Firstly, as of the current moment, bridging loans are mostly unregulated in Northern Ireland. This means that lenders do not have to follow strict financial regulations that cap interest rates or impose other borrowing conditions.
As brokers, we only work with reputable lenders that adhere to responsible lending practices, even without formal regulation by the FCA (Financial Conduct Authority). However, oftentimes there is more flexibility and options with unregulated bridging finance – especially for property developers and investors.
Limited Number of Bridging Loan Lenders in Northern Ireland
The main difficulty comes with the number of active bridging loan lenders in Northern Ireland. It's limited compared to other UK regions. Many major lenders are hesitant to operate in Northern Ireland due to the volatile political history and concerns about the economy.
Therefore, finding the right lender who will actually fund your specific bridging loan requirements in Northern Ireland can be tricky. Beneficially, our lender network at Clifton Private Finance gives us extensive access to these limited lenders to match you with the right one. We can get your application in front of the right lender, at a favourable rate despite the challenges.
Recent Bridging Loan Case Studies
Remote Property Location Challenges in Northern Ireland
If your property is located in a remote area of Northern Ireland, this can present some added challenges for obtaining a bridging loan. Some lenders may see remote locations as higher risk, especially if renovations or construction are required.
Our broker team has strong contacts with lenders who are familiar with Northern Ireland's countryside. We can assess the location risks and match you with an appropriate lender who understands the market.
Costs of Bridging Loans in Northern Ireland
The costs of a bridging loan include:
- Interest Rate - This is expressed as a monthly percentage rate and generally ranges from 0.5% to 2% per month in Northern Ireland. Rates depend on your individual circumstances.
- Arrangement Fee - Charged by the lender to cover administration costs, often around 1-2% of the loan size.
- Valuation Fee - Covers a surveyor's valuation of the property. Typically £200-£400.
- Legal & Broker Fees - Solicitor and broker fees for arranging the loan if applicable.
- Early Repayment Charges - Levied if the loan is repaid before the term ends, usually 1-3% of the loan balance.
Overall, bridging loan costs are higher than longer-term mortgages but reflect the flexibility, speed and short-term nature of the lending. Expert brokers, like us at Clifton Private Finance, access the most competitive rates in Northern Ireland's limited market.
See what a bridging loan could cost you with our bridging loan calculator.
Bridging Loan Requirements in Northern Ireland
While requirements vary, and can be flexible, here are some typical bridging loan criteria in Northern Ireland:
- Property value of at least £200,000.
- 50-75% loan-to-value ratio.
- Personal credit score over 500.
- No history of bankruptcy or insolvency.
- Existing property equity or other assets to secure loan.
- Credible exit strategy to repay the loan.
- For property development, planning permission is required.
As experienced brokers, we can assess your specific situation and find lenders who are willing to work with your unique circumstances. Even with bruised credit or unconventional properties, we can source you bridging finance options from private and specialist lenders
The Bridging Loan Application Process
The application process for a bridging loan in Northern Ireland can be simple with the help of a broker. Here’s a step-by-step of the overall process:
- Application - You or your broker will complete an application form detailing your borrowing needs, property value and exit strategy. Evidence like property valuations and financials are gathered.
- Assessment - The lender will assess your application considering the property, exit strategy and your creditworthiness. A broker can advise on improving your chances of approval.
- Valuation & Legal Work - The lender will undertake a physical valuation of the property by a surveyor. Solicitors will conduct legal searches and begin loan documentation.
- Approval - If approved, the lender will issue an offer letter detailing the loan terms like amount, interest rate, fees and repayment period.
- Completion - Legal work is concluded, fees are paid and the bridging loan funds are released, often within 1-4 weeks from initial application.
- Repayment - You repay the loan during the term as agreed, either in instalments or in full at the end of the term once longer financing is secured.
How a Bridging Loan Broker Can Assist You
As experienced specialist brokers, Clifton Private Finance has an extensive network of lenders in Northern Ireland. We can help in several ways:
While bridging loans in Northern Ireland do come with challenges, an experienced broker can guide you through the process to successfully secure the short-term finance you need for your property plans and transactions.
Get in touch today to discuss your specific Northern Ireland bridging loan requirements. Our team looks forward to assisting your application.
Get the Bridging Loan you Need in Northern Ireland
As experienced Northern Ireland bridge loan specialists, we understand the unique lending environment and can help you secure fast, competitive financing. Whether you need funding for a property purchase, development project or other short-term needs, we simplify the process.
Call our team on 0117 959 5094 to discuss your requirements or book an appointment.
We'll guide you through the process from application to approval, comparing rates across our panel of NI lenders. With rapid turnarounds, you can meet tight deadlines and take advantage of time-sensitive opportunities.
If you have any questions about our services or want to start making things happen please contact us
