Bridging Loan FAQs

How much can I borrow?

We have an extensive network of lenders across the United Kingdom, providing bridging loans from £25,000 to £5 million and specialist commercial bridging loans from £5 million to £100 million.

What can I use a bridging loan for?

Bridging loans can be used for any legal purpose whatsoever, without restrictions.

How long does it take to process and pay out bridging loan?

Depending on circumstances, you could have your hands on the money you need in just two business days. We work hard to be as prompt and efficient as possible – get in touch with the team for more information.

How can you arrange such fast bridging finance?

Our extensive network of lenders spanning the UK enables us to quickly and effectively find the very best loans for our customers, free from unnecessary delays and complications.

What type of security is accepted for bridging loans?

The vast majority of lenders accept various types of properties to cover the value of bridging loans. This includes commercial and residential properties alike, along with land and building plots. The condition of the property and type of construction are often inconsequential when applying for a bridging loan.

What if I have arrears or county court judgements?

Just as long as you are able to secure the value of the loan with the required collateral, county court judgements, credit issues, defaults and so on are inconsequential. We take pride in remaining as flexible as possible at all times.

Are bridging loans available for partnerships and limited companies?

Once again, eligibility for a bridging loan typically comes entirely down to the provision of sufficient security, along with the demonstrable ability to pay back the loan as required.

Are there any upfront fees to pay?

No – there are no upfront fees or initial application fees to worry about. All charges and interest rates are established by the lender – the team works hard to provide every applicant with the most competitive quotes on the market.

What costs are involved in bridging lending?

Typically, you will pay an arrangement fee for your bridging loan upon successful completion and acceptance of your application. Meaning that if your application is rejected, you will not pay any fees whatsoever. We personally do not add any initial application fees ourselves and all interest rates and borrowing costs are determined by the lender. You are under no obligation at any time to go ahead with your application, during the initial consultation process.

Can I top up my bridging loan if I need more money?

It all depends on the circumstances at the time, but it is nonetheless perfectly possible to borrow more money if you are able to provide sufficient security to cover the cost of the additional loan.

Will you keep my personal information private?

We take confidentiality and the security of our clients’ financial data extremely seriously. We never have and never will sell or distribute our clients’ personal information for marketing purposes.

What is a closed bridging loan?

A closed bridging loan refers to a loan that is provided for a borrower who is able to provide a guaranteed repayment/exit date. Upon applying for the loan, the borrower can effectively prove to the lender that they will be able to pay back the total balance of the loan on an exact date – perhaps upon the completion of a property sale which has already been arranged. Given that this type of bridging lending is considered to be less risky, closed bridging loans are not only more accessible, but also typically attach the lowest rates of interest.

What is an open bridging loan?

By contrast, open bridging loans are provided in instances where the borrower can only give the lender a rough idea as to when the loan will be repaid. The borrower has some kind of exit strategy in mind and every confidence that the loan will be repaid, but cannot provide a concrete date or proof of their confirmed exit plan. For obvious reasons therefore, open bridging loans are considered to be riskier and are therefore more difficult to successfully apply for and attach higher rates of interest.

What is the difference between a bridging loan and development finance?

The primary difference between a bridging loan and development finance is the way in which the latter can typically be taken out for a period of up to three years – bridging loans usually being restricted to around one year. What’s more, bridging loans can be used for absolutely any legal purpose whatsoever, while development finance is only offered for very specific property development purposes. In the case of property restoration and new build projects, development finance can represent a superior option due to lower rates of interest – the required funds being released gradually as the project plays out.

For more information on any aspect of bridging loans, get in touch with a member of the customer service team today.