Our Residential Bridging Loan Service:
- Residential bridging loans from £50,000 to £25m: whole of market brokerage
- Monthly interest rates from 0.55% pm (lowest on the market)
- Terms from 12 to 36 months
- LTVs up to 80% (up to 100% funding in some cases if other assets are in the background)
- Interest roll-up options
- Rebridge loan options
- Downsizing and upsizing finance for the UK and foreign property purchases. Chain breaking, buy to let, HMO
- Fast auction residential bridging loans
- Light refurbishment loans (currently uninhabitable)
- Second charge residential bridging loans
- UK expat residential bridging loans
- Residential bridging loans for non-UK citizens.
We provide a fast, friendly and professional service to help you get the money you need at the best available rates.
Recent residential bridging loan rates we've secured for clients:
Rates from: Downsizing/Upsizing Releasing Funds From Your Home Short-Term Lease Finance Auction Purchase As at 3rd January 2024 Rates from: Light & Heavy Refurb Finance For Unmortgageable Properties Land Purchase with planning As at 3rd January 2024 Rates from: Up to 80% LTV Minimum Loan £500k Minimum net income £100k As at 3rd January 2024 Thank You for your interest - please complete the form below and a member of our team will be in contact.Residential
Buying Before Selling?
0.50% pm
Development & Refurb
Fast Finance
0.50% pm
Residential
Large Bridging Loans
0.50% pm
Contact Us
Remember, bridging loan interest rates vary depending on your lender, loan-to-value, exit strategy, the current market, and other factors.
Why Clifton Private Finance?
We are residential bridging loan experts, and our advisers know the complex ins and outs of the bridging market.
In fact, in 2022, we won two awards for our bridging service.
And we also won Bridging Broker of the Year 2023.
We can help you:
- Decide if a residential bridging loan is right for you
- Understand what type of loan best suits your situation
- Feel comfortable with how the process works and what the costs will be
And when we've established the best type of bridging finance for you, we will:
- Compare rates across the entire market
- Negotiate the best deal for your circumstances
- Guide you through the application process
- Help you arrange your valuation(s)
- Liaise with your solicitor to sort the paperwork
- Chase through your application until the funds are in your bank account
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.
Sam O'Neill
Head of Bridging
Residential Bridging Loan Case Studies
Read through our 100+ residential bridging loan case studies, breaking down the details of how bridging loan transactions work in practice:
With decades of experience, we'll guide you through the entire process, liaise with solicitors, valuers and lenders and get your residential bridging loan in place as quickly as possible.
Get in touch today to discuss your specific requirements.
Guide to Residential Bridging Loans
A residential bridging loan allows you to quickly access short-term finance using your residential property as security.
Bridging loans can help you secure your dream home or investment property even when standard mortgage finance is not an option. They provide fast access to capital that can be repaid when longer-term funding is arranged.
In this comprehensive guide, we'll explain exactly how residential bridging loans work and their many uses, so you can decide if a bridge loan is the right solution for your needs.
What is a Residential Bridging Loan?
A residential bridging loan works by providing short-term finance (usually around 12 months) to purchase or refinance a residential property. The loans are secured against real estate collateral, usually the property being purchased or an existing property you own.
When the bridging loan term expires, the loan must be repaid in full via the sale of the security property, refinancing to a traditional mortgage, or by securing other financing based on your exit strategy.
Rather than making monthly repayments, with a residential bridging loan, the interest is rolled up (added to the total loan amount). This avoids the need to meet ongoing monthly payments during the term of the loan.
Bridging loans can provide fast access to capital for residential purchases when:
- You need to complete quickly (like buying at auction)
- You want to buy before selling your existing home
- The property needs renovations before it can be mortgaged
- You have a poor credit history or complex income
- You are purchasing property as an expat or foreign investor
Because bridging finance needs to be repaid in a relatively short-term, the interest rates are higher than standard mortgages. However, you only pay interest for the period the loan is outstanding.
Residential bridging loans allow you to:
- Buy your desired property quickly as a cash buyer
- Avoid losing out if your property chain collapses
- Carry out renovations to maximise your sale price
- Wait for the right buyer and best price on your existing home
A residential bridging loan can be an ideal solution whether you are looking to buy a new home, downsize or upsize your existing property.
How Do Residential Bridging Loans Work?
Residential bridging loans provide fast short-term finance that is repaid when longer-term funding becomes available. Here are some of the key steps involved:
- You find a property you want to purchase quickly but can't get a normal mortgage in time.
- You arrange a residential bridging loan secured against the property being purchased or your existing home.
- The lender provides funds within days or weeks to complete your purchase.
- The bridging loan provides a short-term cash flow loan to complete your new property purchase while arranging your longer-term financing.
You repay the bridging loan within the agreed term (usually 12 months), by:
The bridging loan term gives you breathing room to sell at the optimal price or wait for the right mortgage offer rather than rushing your sale or purchase.
The loan is then repaid as a lump sum when your financing is in place. As the loans are asset-backed via the security property, bridging lenders can offer quick access to substantial capital.
Uses for Residential Bridging Loans
There are some notable common scenarios in which residential bridging loans are useful. As a type of property finance, bridge loans stand out for their flexibility. Here are some example uses in more detail.
1. Buying Before Selling Your Current Home
One of the most frequent uses of residential bridging loans is to allow you to make an offer on your dream home before selling the property you live in now.
With a bridge, you can secure your desired new build, upgrade or forever home without the risk of losing it if your existing property sale falls through.
The residential bridging loan allows you to complete your purchase, carry out renovations if needed, and sell your former home within the bridging term.
Once you sell your old property, you simply repay the bridging loan and continue with your new mortgage payments.
2. Bridging Loan for Downsizing Your Property
If you are looking to downsize into a smaller retirement home or property, a residential bridging loan enables you to secure your new home while waiting for your larger, high-value property to sell.
This allows you time to get the best possible price on your existing home, rather than rushing the sale. The equity released from your initial property can comfortably repay the bridge once completed.
Again, you get the flexibility to bridge the gap between purchase and sale without the stress of finding a new buyer in time for your move.
3. Fixing a Broken Property Chain
One of the worst scenarios when buying or selling is having your property chain collapse at the last minute. This leaves you unable to proceed with your transaction and at risk of losing your deposit.
With a residential bridging loan, you can quickly get your purchase back on track. The bridge provides short-term finance to complete your new purchase while you search for a new buyer for your former home.
You can get your dream home secured without the frustration of having to start your property search all over again.
4. Bridging Finance for Property Auctions
Buying a property at auction requires quick completion, usually within 28 days of the sale. A normal mortgage approval and conveyancing can take months, making auction deals impossible.
A residential bridging loan provides the fast finance needed to secure your desired auction property quickly. You then have breathing room after the purchase to arrange refinancing or sell the home within the bridging term.
For property developers and investors, bridging finance is often the only way to capitalise on time-sensitive auction opportunities.
5. Expat and International Buyers
For expats or foreign buyers purchasing property in the UK, bridging finance can also overcome barriers to traditional lending.
Overseas buyers often struggle to get UK mortgages if they have no established credit history in Britain or complex international income sources.
A residential bridging loan can enable ex-pats or foreign investors to buy UK property now while they arrange financing from their home country or apply for a buy-to-let or resident mortgage.
The bridge simply provides temporary financing to secure the property quickly.
Residential Bridging Loan Criteria
While bridging lenders will look at your case individually, your application will typically need to meet the following criteria:
Unlike traditional mortgages, bridging lenders place more emphasis on the property being used as collateral than on your own financial situation.
They also do not require you to prove the affordability of monthly repayments, as the loan will be repaid as a one-time lump sum after your exit.
However, you will need to demonstrate you have credible means to repay the loan through assets like property sales. You can discuss potential options with our advisors.
While credit and income are less important, lenders may impose higher interest rates if you have a poor credit history. Expat and overseas buyers will generally need to put down at least a 50% deposit when using a residential bridging loan to purchase UK property.
How Much Does a Residential Bridging Loan Cost?
Bridging loan costs will vary depending on your specific loan amount and LTV (Loan to Value), the lender, and the length of term. Costs generally include:
- Arrangement fee - usually 2-5% of loan amount
- Valuation fees - from £3,000 based on property value
- Legal fees - £800+
- Broker fees - we charge around 2% of the loan
- Monthly interest rates - typically 0.5-2% per month
You will not need to make monthly repayments, as the interest accrues until repayment at the end of your bridging term. While bridging loan rates are higher than normal mortgages, you only pay for the duration of your loan, and they enable transactions not otherwise possible.
We will find the lender and loan terms that best fit your case to keep costs as low as feasible. Our access to exclusive residential bridging rates can save you substantially.
How to Apply for a Residential Bridging Loan
As experienced bridging loan brokers, we can provide expert guidance through the entire application process to make things straightforward.
The typical steps are:
Why Work with a Bridging Loan Broker?
Specialist brokers such as us at Clifton Private Finance provide invaluable expertise and support in arranging residential bridging loans.
We will:
- Access exclusive residential bridging rates unavailable directly
- Match your case to the best-suited lenders
- Handle communications and paperwork with lenders
- Guide you through the process from start to finish
- Use our experience to make things straightforward
With extensive knowledge of the bridging market, we can identify solutions where banks and standard products can't help. Our independent brokers work only in your best interest.
In Need of a Residential Bridging Loan – Here’s the Next Steps
We hope this guide has provided useful information to help you decide if a residential bridging loan is the right solution for your needs.
At Clifton Private Finance, we have years of experience arranging residential bridging loans. Our whole-of-market access means we can find you the very best rates and terms for your specific situation.
We'll assess your property, credit history and exit strategy to match you with suitable lenders. We'll then negotiate on your behalf to secure the most competitive deal.
Throughout the process, our advisers will be available to answer any questions and provide reassurance. We'll handle all communications with lenders and solicitors to make things straightforward. Whether you're buying a new home, downsizing or fixing a broken chain, we can arrange the fastest bridging loan to suit your needs.
To discuss your requirements in more detail and start your residential bridging loan application, contact us today at 0117 959 5094 or Email: helpdesk@cliftonpf.co.uk
You can also use our 24/7 enquiry service through live chat - contact us any time, and we'll get back to you as soon as possible - we reply to every message!
If you have any questions about our services or want to start making things happen please contact us
